1. Modo Unico, a European company, is borrowing US$550,000,000 via a syndicated eurocredit for 6 years at 70 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 totalling 1.3% of the principal amount. What is the effective interest cost for the first year if LIBOR is 4.10% for the first six months and 4.30% for the second six months