A firm wants to borrow $3,000,000 million to buy an asset whose current value is $3,130,469 million. The firm wants to take out the loan for 2 years.

The volatility of the asset's value is 19.00%. The risk free rate of interest is 1.50%.

a.) The dollar value of this loan to the bank is?

b.) The market risk premium the bank will charge is?

c.)If the bank estimates that the probability of default is 65.71 percent, what is the estimated recovery rate?