The TRC Bank is planning on raising $500 million in a new offering of commercial paper through its holding company. This will create $475 million of earning assets to fund new loans. The current interest rate for similar commercial paper is 6.40 percent and they expect 0.20 percent in issuing costs. What is the effective rate of interest on this issue of commercial paper (what hurdle rate must be earned on the earning assets)? A. 6.70% B. 6.95% c. 6.74% D. 7.05% E. 6.60% First National Bank has new loan requests of $155 million, needs to purchase $50 million in U.S. Treasury securities to meet pledging requirements, and anticipates draws against credit lines of $45 million. Deposits received today total $140 million and the bank expects to bring in an additional \$240 million or deposits over the next week. What is First National's estimated funds gap for the coming week? (while these items listed above are either outflows or inflows of cash, the positive or negative doesn't matter here for the final estimated "gap", i.e,, treat -20 or +20 like "20") A. $145 million B. $100 million c. $225 million D. $130 million E. $140 million