The Habender Company just issues a two$-$year bond at $12\%.$ Inflation is expected ot be $4\%$ next year and $6\%$ the year after. Havender estimates its default risk premium at about $1\mathrm{.}5\%$ and iuts maturity rsk premium at about $0\mathrm{.}5\%.$ Because its relatively small and unknown firm, its liquidity risk premiuym is about $2\%$ even on relatively short debt like this. What pure interested rate is implied by these assumptions?