The X Bank is a commercial bank that mainly engage in taking deposits and makes loans to corporations. The deposit attracted at the end of year 2017 is $ 100 Million SGD, and the deposit is expected to rise by 10% until 2022. The current deposit rate is 0.5% above LIBOR. X lends to corporations at an average of LIBOR + 3%, and the total amount is currently $ 120 Million, and is expected to grow by 20% per year over the next five years.

Question

The X Bank is a commercial bank that mainly engage in taking deposits and makes loans to corporations. The deposit attracted at the end of year 2017 is $ 100 Million SGD, and the deposit is expected to rise by 10% until 2022. The current deposit rate is 0.5% above  LIBOR. X lends to corporations at an average of LIBOR + 3%, and the total amount is currently $ 120 Million, and is expected to grow by 20% per year over the next five years.
1. How much does X need to raise at the end of 2017, assuming that X will have sufficient amount of funds for the next five years. Suppose it can make an annual 3% profit from the proceedings.
2. The management of X decides to issue a 5 year bond. The annual coupon rate is 2%, and the YTM of this bond is expected to be 5%. What is the face value of this bond? What is the duration of the bond?