In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following:

1. Pay 1.87 percent per quarter on any funds actually borrowed.

2. Maintain a 1 percent compensating balance on any funds actually borrowed.

3. Pay an up-front commitment fee of 0.23 percent of the amount of the line.

Required: Based on this information, answer the following:

(a) Ignoring the commitment fee, what is the effective annual interest rate on this line of credit? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

(b) Suppose your firm immediately uses $217 million of the line and pays it off in one year. What is the effective annual interest rate on this $217 million loan? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)