Question: A Treasury bond due in 1 year has a yield of 3.5%, while a Treasury bond due in 5 years has a yield of 7.5%.

A Treasury bond due in 1 year has a yield of 3.5%, while a Treasury bond due in 5 years has a yield of 7.5%. A bond due in 5 years issued by High Country Marketing Corp. has a yield of 13%, while a bond due in 1 year issued by High Country Marketing Corp. has a yield of 5%. The default risk premium on the 5-year bonds issued by High Country Marketing Corp. is _________.

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