Camerata Construction borrowed $19,000,000$ for $10$ years at $7\%$ specifically to modernize its operations with new equipment. The average rate of interest on Camerata's debt after considering the most recent loan was $5\mathrm{.}5\%.$ What rate of interest should be used for capitalizing the borrowing costs on the new equipment under IAS $23?$

Multiple Choice

$5\mathrm{.}5\%$

$7\%$

$6\mathrm{.}25\%$

Some other amount