Bank M issues mortgage loans. It is estimated that 1% of the clients lose their jobs within one year. In that case they immediately stop repaying the loans. Moreover, 9% of the clients who are made redundant, find a new job within one year-period and continue repaying the loans. Suppose than in year "0" 10,000 loans were issued. In that case there are two states: | good loans (G) and bad loans (B) with an initial vector: x = [GB] = [10,000 0]. Set up the Markov transition matrix for this problem. What will be the number of non-performing loans (i.e. bad loans) in 3 years? What about 20 years? What is the steady-state ratio of bad loans to total loans? Answer the previous question given that the initial vector x = [G B] = [4,000 6,000].