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On June 30, 2020, Dell Company issued $3,420,000 face value of 16%, 20-year bonds at $4,449,160, a yield of 12%. Dell uses the effective-interest method

On June 30, 2020, Dell Company issued $3,420,000 face value of 16%, 20-year bonds at $4,449,160, a yield of 12%. Dell uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.

Determine the total cost of borrowing over the life of the bond.

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