A corporation sells an issue of $20,000,000 of 10%, 20-year bonds to an investment banking concern for $19,200,000. The corporation's initial disbursements for fees of lawyers, accountants, trustee and other outlays in connection with the bond issue are $400,000. Each year the disbursements for fees to the trustee and registrar of the bonds and the clerical and other expenses in connection with the interest payments are $250,000. What is the before-tax cost of this borrowed money expressed as an interest rate? 

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