A bank issues a $400 loan to a borrower, who is either type X or Y. If she is type X, she repays with probability 0.89 and defaults otherwise, and if she is type Y she repays with prob. 0.75 and defaults otherwise. The bank figures she is either type with prob. 50%. What is the lowest pooling rate the bank can afford to charge?

29%

26%

25%

22%