Suppose two firms want to borrow money from a bank for a period of one year. Firm A has excellent credit, whereas Firm B$\text{'}$s credit standing is such that it would pay prime $+3$ percent. The current prime rate is $6\mathrm{.}96$ percent, the $30-$year Treasury bond yield is $4\mathrm{.}56$ percent, the $3-$month Treasury bill yield is $3\mathrm{.}68$ percent, and the $10-$year Treasury note yield is $4\mathrm{.}43$ percent. Now suppose that Firm B decides to get a term loan for $10$ years. What is the new loan rate for Firm B and how does the longer term impact its borrowing costs?

Firm B$\text{'}$s loan rate

$\%$

Company's borrowing cost will