Assume that today, the annualized one-year interest rate is 8 percent. A two-year security has an annualized interest rate of 11 percent.

One year from now, you are planning to sell the 1-year commercial paper to investors. You also know that the liquidity premium for your company is estimated to be 0.8 percent, there is a 0.5 percent tax adjustment, and the appropriate default premium is 1.6 percent. Find the yield of your future commercial paper.