Assume you are pricing a 5 year bullet loan to a client. The loan will have equal annual interest payments in each year, unless the loan defaults in that year, in which case the payment received will equal the recovery value of the collateral, which is assumed to be 70 percent of the loan principal amount. A bullet repayment of principal will occur in year 5 if there is no default. Also, assume that the probability of default in each of the 5 years is 2 percent. If the loan is priced at 8.8 percent, what is the expected realized interest rate on the loan?