A business intends to use 90-day bank-accepted bill futures to hedge the interest rate risk resulting from its plans to borrow approximately $40 million using the issue of commercial paper in three months. The yield on commercial paper is currently 6.45% p.a. and the 90-day bank-accepted bill futures are currently priced at 95.35.

The effective cost of funds if, in three months time the yield on commercial paper is 7.6% p.a. and the 90-day bank-accepted bill futures contract is priced at 94.34, is ______ % p.a. (rounded to two decimal places)

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