Pershing Creations Ltd. (PCL) raised $9,500,000 by selling $10,000,000 of 5-year bonds dated January 1, 2024. PCL used part of the proceeds to pay its investment bank fees of $200,000 and related legal and accounting fees of $300,000. Interest payable is due on June 30 and December 31 each year. PCL can call the bonds on January 1, 2026 at 102. The company does exercise this privilege and redeems 60% of the bonds on the call date. The companys year end is December 31. The company is following IFRS.

Required:

Find the implicit interest rate