Grand Park Hotels is a Yemeni hotel company that derives $25\%$ in Yemen and $75\%$ of its revenues in Palestine.You have collected the following information on the countries:$$USD $10-$year bond rate$$ Local Currency $10-$year bond ratePalestine$5\mathrm{.}5\%7\mathrm{.}5\%$Yemen$6\mathrm{.}5\%8\mathrm{.}5\%$The risk$-$free rate in US dollars is $1\mathrm{.}50\%$ and the equity risk premium in the US $($a mature market$)$ is $5\%.$Estimate the default risk for Palestine.Answer for part $1$Estimate the risk$-$free rate for Palestine.Answer for part $2$If the equity is $1\mathrm{.}30$ times more volatile than the government bonds in emerging markets, estimate the equity risk premium for the company in USD.Answer for part $3$If the beta for$$Grand Park Hotels is $1\mathrm{.}20,$ Estimate the cost of equity for$$Grand Park Hotels in USD.Answer for part $4$