I have the answer but I need to know step by step exactly how they got this answer please. Every detail using excel. I have no idea how they got that number using the RATE formula function.

Black Hill Inc. sells $100 million worth of 18-year to maturity 7.58% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $972 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Round the answer to two decimal places in percentage form.(Write the percentage sign in the "units" box)

You should use Excel or financial calculator.

Answer:

25(7.88)%

Great Seneca Inc.sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. The firm's marginal tax rate is 40%. What is the after-tax cost of capital for this debt financing?

Round the answer to two decimal places in percentage form.(Write the percentage sign in the "units" box)

You should use Excel or financial calculator.

Answer:

16(4.12)%