and you believe Rite Aid's bonds have a beta of $0\mathrm{.}34.$ The expected loss rate of these bonds in the event of default is $54\%.$

a$.$ What annual probability of default would be consistent with the yield to maturity of these bonds in mid$-2009?$

b$.$ In mid$-2015,$ Rite$-$Aid's bonds had a yield of $6\mathrm{.}8\%,$ while similar maturity Treasuries had a yield of $1\mathrm{.}2\%.$ What probability of default would you estimate now?

a$.$ What annual probability of default would be consistent with the yield to maturity of these bonds in mid$-2009?$

The required return for this investment is

$\%.($Round to two decimal places.$)$