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Petrol Ibrico. Petrol Ibrico, a European gas company, is borrowing $750,000,000 via a syndicated eurocredit for six years at 90 basis points over LIBOR LIBOR for the loan will be reset every six months. The funds will be provided by a syndicate of eight leading investment bankers, which will charge up-front fees totaling 1.2% of the principal amount. What is the effective interest cost for the first year if the annual LIBOR is 4.20% during the first six months and 4.60% during the second six months The effective interest cost for the first year is% (Round to two decimal places) DKM 2/20 3/2018