Sherlock Bank is a commercial bank listed in the Philippines. Sherlock Banks credit rating: BB Philippine country rating: BBB Default Spread over US Treasury (% p.a.) A BBB BB B 1.00 2.10 3.20 4.40 10-year government bond yield in Philippine Peso: 3.8% 10-year US Treasury rate: 2.3% Relative volatility of bond versus equity: 0.8 times Beta for Philippine banks: 1.0 Mature market equity risk premium: 6%. Tax rate: 25% Exchange rate: 1 USD to 48.5 Philippine Peso (PHP)

What is the Country Risk Premium for the Philippines? Estimate Sherlocks cost of equity (in PHP terms).