Question: How Do I calculate the below correct answer in excel. Black Hill Inc. sells $100 million worth of 22-year to maturity 13.44% annual coupon bonds.

How Do I calculate the below correct answer in excel.

Black Hill Inc. sells $100 million worth of 22-year to maturity 13.44% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $989 for each $1,000 bond. What is the before-tax cost of capital for this debt financing? Answer: 13.58 %

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