b) The Bank Smart Mortgage & Lending grants mortgages to its clients. Given are the following parameters about a portfolio of 1'000 identical mortgages. Mortgage amount Probability of default Recovery rate Operating cost Required equity Target ROE Refinancing rate CHF 1'000'000 (for each mortgage) 2% (for each mortgage) 85% (for each mortgage) 0.2% p.a. (for each mortgage) CHF 50'000 (for each mortgage) 15% (for the mortgage portfolio) 0.50% (for each mortgage) What is the minimum interest rate for each mortgage so that the portfolio reaches break- even financially (accounting view) and economically shareholder view)? (3 points)