In exchange for a $430 million fixed commitment line of credit, your firm has agreed to do the following:

1.	Pay 3 percent per quarter on any funds actually borrowed.
2.	Maintain a 4 percent compensating balance on any funds actually borrowed.
3.	Pay an up-front commitment fee of .13 percent of the amount of the line.

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 percent rounded to 2 decimal places, e.g., 32.16.)

Effective annual interest rate

%

b.	Suppose your firm immediately uses $100 million of the line and pays it off in one year. What is the effective annual interest rate on this $100 million loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Effective annual interest rate

%