General Auto Parts Corporation issued a $2-$year bond with a face value of $$20$ million and a coupon rate of $5\mathrm{.}5$ percent. The company received $$18$ million from the sale of bonds $($after paying floatation costs$)$ and is required to make principal plus interest payments at the end of the next $2$ years. The total cash flows $($both inflows and outflows$)$ are summarized as follows:

TODAY YEAR $1$ YEAR $2$

Principal $$18$ million $$0\mathrm{.}0$ million $($$$20$ million$)$

Interest $($$$0\mathrm{.}99$ million$)($$$0\mathrm{.}99$ million$)$

Total $$18$ million $($$$0\mathrm{.}99$ million$)($$$20\mathrm{.}99$ million$)$

What is the cost of capital to General Auto Parts for the debt issue?