In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following:
1.	Pay 1.89 percent per quarter on any funds actually borrowed.
2.	Maintain a 2 percent compensating balance on any funds actually borrowed.
3.	Pay an up-front commitment fee of 0.21 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).)

Effective annual rate

%

(b)	Suppose your firm immediately uses $219 million of the line and pays it off in one year. What is the effective annual interest rate on this $219 million loan? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Effective annual rate

%