Question $13(1$ point$)$

Orange Inc. has issued zero$-$coupon corporate bonds with a $9-$year maturity. The bond has a face value of $$1,000.$ Investors believe there is a $55\%$ chance that the company will default on these bonds. If the company does default, investors expect to recover $48\%.$ If investors require a $8\mathrm{.}70\%$ expected return on their investment in these bonds, what is the yield to maturity on these bonds?

Instructions: Round the result to two decimal places and do not put the $"\%"$ symbol in the answer box. For example if you get a result of $17\mathrm{.}8492\%$ then write $17\mathrm{.}85$ in the answer box below.

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