LOAN COMMITMENT Use the following information on a one-year loan commitment to calculate the return on the loan commitment. BR = FI's base rate on the loans = 3.5% = risk premium on loan commitment = 1.7% f1 = Upfront fee on the whole commitment = 30 basis points (0.30%) f2 = Back-end fee on the average unused portion of the commitment = 40 basis points (0.40%) b = compensating balance on loans = 10% RR = Reserve requirements = 3% td = Expected (average) takedown rate on the loan commitment = 55%