please complete this part as soon as possible

PARTI You operate a local mortgage & loan business with two other partners. Your role is to understand the Bank of Canada's target overnight rate and how it affects your bottom line. 1. Suppose your business would like to borrow funds from the Bank of Canada. You can do this, however, the Bank of Canada will charge you the target overnight rate as a borrowing fee (a) Explain briefly what the target overnight rate is. (b) What is the current target overnight rate and when was it last changed? What was the main reason for the change to the target overnight rate? (c) Suppose the target overnight rate increases to 1.5% How might this affect the rates you give to your customers? How might this change the demand for loans & mortgages for your business? 2. You borrow $10,000 from the Bank of Canada at the current target overnight rate for two years (assume compounded monthly). You lend $5,000 at a rate of 3.5% compounded monthly for two years, and lend the other $5,000 at a rate of 2.5% compounded monthly Assuming the loans are paid off in a lump sum in two years, determine your net profit two years from today. Include a time dingram for full marks and perform all calculations by hand PARTI You operate a local mortgage & loan business with two other partners. Your role is to understand the Bank of Canada's target overnight rate and how it affects your bottom line. 1. Suppose your business would like to borrow funds from the Bank of Canada. You can do this, however, the Bank of Canada will charge you the target overnight rate as a borrowing fee (a) Explain briefly what the target overnight rate is. (b) What is the current target overnight rate and when was it last changed? What was the main reason for the change to the target overnight rate? (c) Suppose the target overnight rate increases to 1.5% How might this affect the rates you give to your customers? How might this change the demand for loans & mortgages for your business? 2. You borrow $10,000 from the Bank of Canada at the current target overnight rate for two years (assume compounded monthly). You lend $5,000 at a rate of 3.5% compounded monthly for two years, and lend the other $5,000 at a rate of 2.5% compounded monthly Assuming the loans are paid off in a lump sum in two years, determine your net profit two years from today. Include a time dingram for full marks and perform all calculations by hand