A bank with a two-year investment horizon issued a one-year CD for $20 million dollars at an interest rate of 1.5%. The bank purchased a two-year Treasury with the proceeds that pays 3%. What happens to the profits in the second year if all rates rise by 1% ? The profits rise to $5,500,000 The profits drop to $0. The profits decline to $100,000. The profits stay the same at $300,000