You are attempting to estimate the cost of capital for BHI company using a multifactor linear model. You estimate the first two $($and only$)$ betas at B$1=1\mathrm{.}26$ and B$2=0\mathrm{.}38.$ At the same time, you estimate the risk premia for each of these respective factors to be $8\mathrm{.}5\%$ and $2\mathrm{.}8\%$ per annum. If the one$-$year US Tbill is trading at $98\mathrm{.}8,$ what is the annual expected cost of capital for BHI using this model?

$[$Please give your answer in decimals. $5\mathrm{.}2$ will be interpreted as $5\mathrm{.}2\%]$