Assume a bank grants a loan commitment at an interest rate of 10% per annum and the risk premium on the loan is 2%. The bank charges borrowers an upfront fee on the whole commitment of 0.25% and a back-end fee on any unused proportion of the loan of 0.5%. The compensating balance is 10% and so are reserve requirements. Assume that the average draw-down of the loan is 80% over the time of the loan commitment. What is the promised return on the loan commitment (round to two decimals)?

12.00%

12.75%

13.23%

13.67%