Please solve A, B, C, and D. As soon as possible. Thank you!

HW #3-Types of Risks Facing Financial Institutions This homework assignment is worth up to 20 points toward your final grade. 1. Suppose a bank has the following assets and liabilities on its balance sheet: Loans CDs $100 million $100million 3.75% 3.15% 5 years 3 years All rates are locked in for the period of time specified. a. Is the bank long-funded or short-funded? What types of interest rate risk is the bank exposed to? Explain. (2 points) b. What is the bank's spread? (2 points) C. If interest rates are expected to rise by 0.5% in Year 3, what will happen to the bank's spread? (3 points) d. If interest rates are expected to decline by 0.25% in Year 3, what will happen to the bank's spread? (3 points)