Question: 8. Problem 6.13 (Default Risk Premium) eBook The real risk-free rate, r, is 2.8%. Inflation is expected to average 2.1% a year for the next

8. Problem 6.13 (Default Risk Premium) eBook The real risk-free rate, r, is 2.8%. Inflation is expected to average 2.1% a year for the next 4 years, after which time inflation is expected to average 3.25% a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 9.35%, which includes a liquidity premium of 0.5%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places

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