YYY Bank has several customers in various segments. The bank wants to correctly price term loans to corporate businesses in its portfolio. The following information is available: - The bank's general hurdle rate is 5.50%. - Corporate businesses are to provide collateral to the value of 70% of term loans. - Historically the default rate for corporate businesses is 1.2%. Calculate the interest rate Bank YYY should charge on term loans to corporate businesses. Show your workings and answer in the space provided below