In exchange for a $400 million fixed commitment line of credit your firm has agr

In exchange for a $400 million fixed commitment line of credit your firm has agreed to do the following:> Pay 2.1% quarter on any funds actually borrowed.> Maintain a 4 % compensating balance on any funds actually borrowed.> Pay an up-front commitment fee of 0.15% percent of the amount of the line.Based on the information above answer the following:a. Ignoring the commitment fee what is the effective annual interest rate on this line of credit?b. Suppose your firm immediately uses $130 million of the line and pays it off in one year. What is the effective annual interest rate on this $130 million loan?