Leyland Enterprises has $5,000,000 in bonds outstanding. The bonds each have a maturity value of $1,000, an annual coupon of 12 percent, and 15 years left until maturity. The bonds can be called at any time at a call price of $1,100 per bond. If the bonds are called, the company must pay flotation costs of $50,000 ($10 for every $1,000 of bonds outstanding.) Ignore tax considerations. Assume that the tax rate is zero. The company's decision whether to call the bonds depends critically on the current interest rate it would pay on new bonds issued. What is the breakeven interest rate, which is profitable to call in the bonds?