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TBTF Bank makes a 10 year interest only loan to AFC Inc of $1,700,000.00. The interest rate on the loan is i (4) = 8.625%,

TBTF Bank makes a 10 year interest only loan to AFC Inc of $1,700,000.00. The interest rate on the loan is i⁽⁴⁾ = 8.625%, and the payments will be made annually. TBTF reinvests the payments at an interest rate of i⁽²⁶⁾ = 6.125%. At maturity, what is TBTF Bank's annual ROI over the lifetime of the loan? (AFC does not default.)

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