An FI wants to evaluate the credit risk of a $5 million loan with a duration of 4.3 years to a AAA borrower. There are currently 500 publicly traded bonds in that class (i.e., bonds issued by firms with a AAA rating). The current average level of rates (R) on AAA bonds is 8 percent. The largest increase in credit risk premiums on AAA loans, the 99 percent worst-case scenario, over the last year was equal to 1.2 percent (i.e., only 6 bonds out of 500 had risk premium increases exceeding the 99 percent worst case). The projected (one-year) spread on the loan is 0.3 percent and the FI charges 0.25 percent of the face value of the loan in fees. Calculate the risk-adjusted return on capital (RAROC) on this loan