Desert Trading Company has issued $$100$ million worth of long$-$term bonds at a fixed rate of $12\%.$ The firm then enters

into an interest rate swap where it pays SOFR and receives a fixed $6\mathrm{.}5\%$ on notional principal of $$100$ million. What is

the firm's effective interest rate on its borrowing?

Note: Enter value as positive amount. Round your answer to $1$ decimal place.