ABC One Bank offers one-year loans with a 9 percent stated or base rate, charges a 0.25 percent loan origination fee, im

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ABC One Bank offers one-year loans with a 9 percent stated orbase rate, charges a 0.25 percent loan origination fee, imposes a10 percent compensating balance requirement, and must hold a 6percent reserve requirement at the Federal Reserve. The loanstypically are repaid at maturity.
a. If the risk premium for a given customer is 2.17percent, what is the simple promised interest returnon the loan?
b. If the risk premium for a given customer is 3.10percent, what is the contractually promised gross return onthe loan per dollar lent?
Note: Convert your answer to percentageformat. Enter your answer rounded to 2 decimals, and without anyunits. So, for example, if your answer is 3.4568%, then just enter3.46.