$5.$ Tasman Industries Ltd $($TIL$)$ has three classes of debt comprising commercial bills, bank overdraft and bonds. TILs three classes of debt as at $30$ June $2014$ are given below. $[$A modified example from PBEHP, Table $14\mathrm{.}1,$ p$.424.]$ Sources of finance Book value $($$$000)$Commercial bills $20,000$Bank overdraft $5,000$Bonds $10,000$Additional information:i$)$ The commercial bills have a current interest rate of $6\%$ per annum. The existing bills mature on $30$ September $2014$ but will be replaced by a further issue at that date.ii$)$ The interest rate on bank overdraft is $9\%$ per annum, calculated daily and charged to TILs account every month. iii$)$ There are $100$ bonds, each with a face value of $$100,000$ and a coupon interest rate of $8\%$ per annum, payable on $30$ June and $31$ December each year. The bonds will be redeemed at their face value on $30$ June $2018.$ On $30$ June $2014$ the market value of each bond was $$102,000.$You are required to calculate TILs average cost of debt before tax $($effective annual rate$).$