You are a loan office for the Southwest Bank. Your customer, Oh Deere and Company needs a loan. Your credit analyst estimates the company has a credit rating of BB- by S&P which implies a 2.17% default rate. Since this loan is collateralized by the company's inventory, the expected recovery rate in a bankruptcy scenario is high at 80%. The bank has cost of capital of 4.85%. What is the lowest rate you could charge your customer and still deliver a fair rate of return to the banks shareholders