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During the first year, Fidelity Bank had $300 in one-year deposits at a fixed interest rate of 5%. During the first year, Fidelity Bank gad

During the first year, Fidelity Bank had $300 in one-year deposits at a fixed interest rate of 5%. During the first year, Fidelity Bank gad given $300 million worth of 3-year loans ay a fixed interest rate of 8%. A) Did Fidelity Bank make a profit or loss on these operations during the first year? Calculate the profits or losses for the first year. Show your calculations. B) During the second ywar conditions in the monet market became tight and depositors demanded a 7% fixed payment rate on their deposits. What are the profits or losses of Fidelity Bank on these operations during the second year, Did thet make profits or losses? Show your calculations. C) During the second year, did Fidelity Bank suffer from refinancing risk, reinvestment risk, or liquidity risk? Explain your

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