Whatchamacallit Sports (Whatchamacallit) is considering bidding to sell $100,000 of ski equipment to Phang Family Enterprises of Seoul, Korea. Payment would be due in 6 months. Since Whatchamacallit cannot find good credit information on Phang, Whatchamacallit wants to protect its credit risk. It is considering the following financing solution.

Phang's bank issues a letter of credit on behalf of Phang and agrees to accept Whatchamacallit's draft for $100,000 due in 6 months. The acceptance fee would cost Whatchamacallit $500, plus reduce Phang's available credit line by $100,000. The bankers' acceptance note of $100,000 would be sold at a 2% per annum discount in the money market. What is the annualized percentage all-in-cost to Whatchamacallit of this bankers' acceptance financing?