Calculating the risk premium on bonds The text presents a formula where (1 + 1) = (1-p)(1+i+ x)+ p(0) where / is the nominal interest rate on a riskless bond x is the risk premium p is the probability of default (bankruptcy) If the probability of bankruptcy is zero, the rate of interest on the risky bond is i When the nominal interest rate for a risky borrower is 9% and the nominal policy rate of interest is 3%, the probability of bankruptcy is |%. (Round your response to two decimal places.)