a. Briefly explain the Interest-rate risk faced by banks in day-to-day business. 2 marks b. Given the following financial information of Portland Bank: Bank assets: short term securities with less than 181-day maturity ($24 million), long term securities with maturities of 7 years (18 million), commercial loans maturing in less than 1 year ($40 million), and commercial loans maturing in more than 5 years ($80 million). Bank liabilities: federal funds ($20 million), money market deposit accounts (20 million), short term borrowings with maturities of less than 1 year ($30 million), long term borrowings with maturities of 5 years ($25 million), Certificate of Deposit at variable rates ($9 million) and Certificate of Deposit maturing in more than 2 years ($16 million). i. What is the current Income Gap for Portland Bank? Show all your calculations. 6 marks ii. What will happen to Portland Bank's current net interest income if interest rates increase by 1%? Show all your calculations. 3 marks