Assume an efficient capital market. At $t=0$ we have the following information about corporate bonds issued by PARIS OLYMPICS.

The nominal $($face$)$ value of each bond is $1000.$ The remaining maturity is $1$ year and the annual coupon rate is $4\%.$ The probability

of default $($p$)$ equals $20\%.$

Due to the probability of default, the expected cash flow at $t=1$ is lower than the promised cash flow. The expected cash flow per

bond at $t=1$ is $840.$ At $t=0$ the price per bond is $777\mathrm{.}78.$ The $1-$year spot rate $(r_1)$ is $5\%$ and the risk premium required by the

bondholders is $3\%.$

$1\mathrm{.}0$p $7$ Calculate the Yield to Maturity $($YTM$)$ of the bond.

Round your final answer to two decimal places, and ignore the percentage sign.

For example: You calculate a YTM of $23\mathrm{.}45678\%$ and now give in: $23\mathrm{.}46$