Homework: Chapter 14 Homework Week 11 Save Score: 0 of 1 pt | 8 of 10 (7 complete) HW Score: 70%, 7 of 10 pts Problem 14-8 (algorithmic) Question Help Petrol Ibrico. Petrol Ibrico, a European gas company, is borrowing $600,000,000 via a syndicated eurocredit for six years at 120 basis points over LIBOR. LIBOR for the loan will be reset every six months. The funds will be provided by a syndicate of eight leading investment bankers, which will charge up-front fees totaling 1.1% of the principal amount. What is the effective interest cost for the first year if the annual LIBOR is 4.40% during the first six months and 4.80% during the second six months. The effective interest cost for the first year is %. (Round to two decimal places.)