Suppose two firms want to borrow money from a bank for a period of one year. Firm A has excellent credit, whereas Firm B’s credit standing is such that it would pay prime + 3 percent. The current prime rate is 6.57 percent, the 30-year Treasury bond yield is 4.34 percent, the three-month Treasury bill yield is 3.47 percent, and the 10-year Treasury note yield is 4.18 percent. What are the appropriate loan rates for each firm? (Round percentage to 2 decimal places, e.g 52.32%.)
Firm A loan rate
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%.
Firm B loan rate
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%.