Consider the following information for bonds: D Rating A or above BBB BB B CCC Average default rate 0.2% 0.5% 2.3% 6.0% 12.2% Average beta 0.05 0.1 0.18 0.25 0.30 There is a new bond issue that is BBB. You are given that: (i) A B bond has an expected return of 5%. (ii) The market risk premium is 4.6%. (iii) The new BBB bond has an expected loss rate given default of 55%. Find the yield to maturity of the BBB bond. (write the answer in percentage and take 3 digits after the decimal point) Answer: