Consider the following information regarding corporate bonds:

Rating AAA AA A BBB BB B CCC

Average Default Rate 0.0% 0.1% 0.2% 0.5% 2.2% 5.5% 12.2%

Recession Default Rate 0.0% 1.0% 3.0% 3% 8.0% 16.0% 48.0%

Average Beta 0.05 0.05 0.05 0.10 0.17 0.26 0.31

Raymond Oil has a bond issue outstanding with seven years to maturity, a yield to maturity of 7.6%, and a BBB rating. The bondholders' expected loss rate in the event of default is 70%. Assuming the economy is in recession, then the expected return on Raymond Oil's debt is %? (round two decimal places)