Suppose XYZ bank in Manitoba takes 1-year term deposit from its residence and pays them 4% interest. The bank raised $100 million dollars. Then it uses the whole amount to make a 10-yearloan at 4.5% to the local university to build a shining new residence building. Sounds like a good investment! What is the forward rate for the fifth year if the annual interest rate increases according to the table below? In general, what will happen to the bank if it uses short term deposits to cover the long term loans when interest rate changes.

Time	Rate
1	4.00%
2	4.50%
3	4.70%
4	4.80%
5	5.00%