7. Gas du Ancy. Gas du Ancy, a European gas com- pany, is borrowing US$650,000,000 via a syndicated Eurocredit for six years at 82 basis points over LIBOR. LIBOR for the loan will be reset every six months. The funds will be provided by a syndicate of eight leading investment bankers, which will charge up-front fees totaling 1.2% of the principal amount. What is the effective interest cost for the first year if LIBOR is 4.00% for the first six months and 4.20% for the second six months?