Bank ABC has a loan portfolio of 100 million repayable in five (5) years. Repayment is expected at 120 million assuming 100% repayment at the end of the five years. However, a default rate of 2% is anticipated with 20% recovery on defaults. Calculate the yearly rate of interest to be charged taking into account the default and recovery rates but before any inflation and expense charges. Select one: O A 3.714% OB. 4.091% OC. 3.893% OD. 4.134% O E 4.049%