(Rate with LGD, risk-neutral lender) Assume a bank can invest in a government bond at a risk-free rate of 3.37%. Alternatively, it can invest in a corporate bond with a default probability of 7.7%. If the issuer defaults, the bank expects to lose 61% of the investment. A risk-neutral bank would be indifferent between investing in the government bond and the corporate bond if the corporate bond offers a rate of Blank 1. Calculate the answer by read surrounding text. %. Round to the nearest 0.01%, drop the % symbol. E.g., if your answer is 0.08365 or 8.365%, record it as 8.37.