What is the YTM $(r_d)$ of a $10-$year corporate bond with the following characteristics:

$r^{**},$ the real risk$-$free rate, is $2\frac{\%}{?}$ year.

Inflation is expected to be $5\frac{\%}{?}$ year for the next $5$ years, and $3\frac{\%}{?}$ year thereafter. Take the arithmetic

average of this inflation forecast to calculate the inflation premium $($IP$)$ for this $10-$year bond.

The maturity risk premium $($MRP$)$ is estimated by the equation: $0\mathrm{.}1\%{?}^{**}(T-1),$ where $T$ is the number of

years to maturity of the bond, which is $10.$

The default risk premium for this bond is $1\mathrm{.}5\frac{\%}{?}$ year

The liquidity premium for this bond is $0\mathrm{.}5\frac{\%}{?}$ year.

Express your answer as a percentage to two decimal places. If your answer is $12\mathrm{.}34\%,$ enter $12\mathrm{.}34.$