As students in business and finance, we need to be aware of the components that make up the cost of borrowing in percentage terms. Thus, suppose the real risk free rate of interest is assessed to be 4%, the maturity risk premium is 2%, inflation premium is 6%, the default risk on similar debt is 3%, the liquidity premium is 2% and the closing charge is assessed at 1.5% of the loan amount. Based on this simulation the nominal interest rate on this ventures debt capital will be:

a. 12.5% b. 15.5% c. 18.5% d. 17%