$1$a$.$ A particular security$\text{'}$s equilibrium rate of return is $8$ percent. For all securities$,$ the inflation risk premium is $1\mathrm{.}75$ percent and the real risk$-$free rate is $3\mathrm{.}5$ percent. The security$\text{'}$s liquidity risk premium is $0\mathrm{.}25$ percent and maturity risk premium is $0\mathrm{.}85$ percent. The security has no special covenants. Calculate the security$\text{'}$s default risk premium. $1$b$.$ Rhodes Corporation $15-$year bonds have an equilibrium rate of return $7$ percent. For all securities$,$ the inflation risk premium is $2\mathrm{.}00$ percent and the real risk$-$free rate is $0\mathrm{.}75$ percent. The security$\text{'}$s liquidity risk premium is $0\mathrm{.}45$ percent and default risk premium is $1$ percent. The security has no special covenants. Calculate the security$\text{'}$s maturity risk premium. $2$a$.$ Tom and Sue's Flower's Inc.$\text{'}15-$year bonds are currently yielding a return of $8\mathrm{.}25$ percent. The expected inflation rate is expected to be $2\mathrm{.}25$ percent annually and the real risk$-$free rate is expected to be $3\mathrm{.}50$ percent annually over the next $15$ years. The default risk premium on Tom and Sue's Flowers's bonds is $0\mathrm{.}80$ percent. The maturity risk premium is $0\mathrm{.}75$ percent on $5-$year securities and increases by $0\mathrm{.}04$ percent for each additional year to maturity. Calculate the liquidity risk premium on Tom and Sue's Flowers Inc.$\text{'}$s $15$ year bonds. $2$b$.$ OG's Corporation's $10-$year bonds are currently yielding a return of $6\mathrm{.}05$ percent. The expected inflation premium is $1\mathrm{.}00$ percent annually and the real risk$-$free rate is expected to be $2\mathrm{.}10$ percent annually over the next $10$ years. The liquidity risk premium on OG bonds is $0\mathrm{.}25$ percent. The maturity risk premium is $0\mathrm{.}10$ percent on $2-$year securities and increases by $0\mathrm{.}05$ percent for each additional year to maturity. Calculate the default risk premium on OG $10-$year bonds.