n exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.88 percent per quarter on any funds actually borrowed. 2. Maintain a 3 percent compensating balance on any funds actually borrowed 3. Pay an up-front commitment fee of 0.22 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate 7.974 % b. Suppose your firm immediately uses $218 million of the line and pays it off in one year. What is the effective annual interest rate on this $218 million loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) Effective annual rate