In mid-2009, Rite Aid had CCC-rated, 17-year bonds outstanding with a yield to maturity of 17.3%. At the time, similar maturity Treasuries had a yield of 2%. Suppose the market risk premium is 6% and you believe Rite Aid's bonds have a beta of 0.38. The expected loss rate of these bonds in the event of default is 57%. What annual probability of default would be consistent with the yield to maturity of these bonds in mid-2009?

The required return for this investment is .......%. (Do not round until the final answer. Then round to two decimal places.)

The annual probability of default is ......%. (Do not round until the final answer. Then round to two decimal places.)