I don't know how to find the tte of interest

Safari File Edit View History Bookmarks Window Help 18 0 8 5 14 7 9 Q 2 @ Thu Mar 25 8:43 PM .. . 0 10 0 laecon1.lyryx.com OU+ Preferences Help Lab 7 (Question 3) Name: Juliette Charest Date: 2021-03-25 Question 3 [9 points] Suppose the Bank of Canada sets its target for the overnight rate at 3 percent, with an operating band of 2.75 to 3.25 percent. a) Bank A finds it has $125 million more on deposit at the central bank than it needs to meet its overnight clearing balance requirement. What is the rate of interest it will earn by holding this central bank deposit overnight? What is the maximum rate it could earn by lending overnight to another bank? Rate of interest earned by holding deposit = 0% Maximum rate earned by lending to another bank = 0% b) Bank B finds it has $100 million less than it needs to meet its overnight clearing balance requirement. Where can it borrow the funds it needs? What is the minimum rate it would have to pay to borrow overnight funds from another bank? What rate would it have to pay if no other bank is willing to lend? Funds can be borrowed from (select one). Minimum rate to borrow funds = 0% Rate paid if no other bank is willing to lend = 0% c) Explain why an overnight loan contract between Banks A and B would have an interest rate that falls within the central bank's operating band