EMSOL Inc. has issued 3-year maturity, 16% coupon bonds with a total nominal value of 400 million . The bonds were sold at 10 % discount and the flotation costs amounted to 4 % of total nominal value. The principal will be repaid in equal instalments after a nonpayment period of one year. Corporate income tax rate is 22 %. Compute the cost of this bond issue. Try 24 % first.