Consider the bank balance sheet shown below: Bank Balance Sheet Reserve $20 Checkable Deposits $30 Short-term Two units (each with Short-term debts $30 Government Bonds a face value equal to (wholesale funding) $10) Long-term loans $40 Capital Asset - Liability The required reserve ratio by the central bank is 50%. Suppose that the current federal funds rate is 10%, and the current interest rate on the short- term government bonds is 5%. 1) Compute the current price of the short-term government bond using its current interest rate. 2) The difference between the federal funds rate and the interest rate on the short-term government bonds opens up an arbitrage opportunity for the bank manager. Explain how the bank manager could utilize this opportunity to maximize the return on the bank's assets without raising any additional liability or capital