In​ mid-2009, Rite Aid had​ CCC-rated,19​-year bonds outstanding with a yield to maturity of 17.3%. At the​ time, similar maturity Treasuries had a yield of 3%. Suppose the market risk premium is 6 %...

In​ mid-2009, Rite Aid had​ CCC-rated,19​-year bonds outstanding with a yield to maturity of 17.3%. At the​ time, similar maturity Treasuries had a yield of 3%. Suppose the market risk premium is 6 % and you believe Rite​ Aid's bonds have a beta of 0.39. The expected loss rate of these bonds in the event of default is 55%.

The required return for this investment is
_______
%.(Round to two decimal​ places.)

The annual probability of default is

_____
​%.
(Round to two decimal​ places.)

The probability of default will be_____%.
​(Round to two decimal​ places.)