G pic wishes to borrow $5 million in 6 months, for a period of 3 months. A bank has quoted the following Forward Rate Agreement (FRA) rales:

3 v 9 6.55%-6.70% 6v9 6.70%-6 90%.

G pic can borrow at 0 75% above base rate, and the base rate is currently 6.25% Concerned that base rates may rise, G pic decides that it will hedge using an FRA

At the settlement date for the FRA, the base rate has risen to 7.50%

What is the effective interest rate paid by G pic for its borrowing?