Question $1$: The following information is given about a Loan:

P or probability of repayment $93\%$

$(1$ P$)$ Probability of default $7\%$

LGD$,$ or Loss Given Default $60\%$

$(1-$LGD$)$ or Recovery Amount $40\%$

Rf or risk$-$free rate $4\%$

RP or Risk Premium $4\%$

Assuming the Lender wants a risk premium of $4\%,$ what will be the rate charged by the lender?

Input your answer to $4$ decimal places, enter $14\mathrm{.}26\%$ as $\mathrm{.}1426.$