Mr. Bill recently borrowed $1,000 from the bank he actually received $940 and is expected to payback $1,000 in one year. The bank estimates that there is a 97% probability that Mr. Bill will pay back the entire $1,000 and a 3% probability of receiving zero. What rate of return does the bank expect to earn? If Mr. Bill believes there is a 100% probability that he will payback the loan, then what rate does Mr. Bill believe he is paying?