Question: 13. Problem 6.13 (Default Risk Premium) eBook The real risk-free rate, f, is 1.8% Inflation is expected to average 1.6% a year for the next

13. Problem 6.13 (Default Risk Premium) eBook The real risk-free rate, f, is 1.8% Inflation is expected to average 1.6% a year for the next 4 years, after which time inflation is expected to average S 2% a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 8.9%, which includes a liquidity premium of 0.7%. What is its default risk premium? Do not round intermediate calculations, Round your answer to two decimal places

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