(1) The bond has a 10-year maturity, a fixed-rate coupon of 10% paid at the end of each year, and a par value of $50,000. The certificate of deposit has a 1-year maturity and an 8% rate of interest. The Fl expects no additional asset growth. What will be the net interest income at the end of the first year? ( 2 points) (2) If at the end of year 1 market interest rates have increased 100 basis points (1\%), what will be the net interest income for the second year? Is this result caused by reinvestment risk or refinancing risk? (2 points) (3) Assuming that market interest rates increase 1%, what will be the value of the bond at the end of year 1? What will be the market value of the equity for the FI ? (2 points) (4) If market interest rates had decreased 100 basis points by the end of year 1 , what will be the value of the bond at the end of year 1? What will be the market value of the equity for the FI? (2 points)