At$$ present, $20-$year Treasury bonds are yielding

$5\mathrm{.}4\%5\mathrm{.}4\%$

while some$20-$year corporate bonds that you are interested in are yielding

$8\mathrm{.}8\%8\mathrm{.}8\%.$

Assuming that the$$ maturity$-$risk premium on both bonds is the same and that the$$ liquidity$-$risk premium on the corporate bonds is

$0\mathrm{.}23\%0\mathrm{.}23\%$

while it is

$0\mathrm{.}0\%0\mathrm{.}0\%$

on the Treasury$$ bonds, what is the$$ default$-$risk premium on the corporate$$ bonds? Note that a Treasuty security should have no$$ default$-$risk premium.

Question content area bottom

Part $1$

The$$ default$-$risk premium on the corporate bonds is

enter your response here$\%.$

$($Round to two decimal$$ places.$)$