Question: Attempts: 0 Keep the Highest: 0/1 14. Problem 6.13 (Default Risk Premium) A-Z - book The real risk free rate, r, 102.1950. Inflation is expected

Attempts: 0 Keep the Highest: 0/1 14. Problem 6.13 (Default Risk Premium) A-Z - book The real risk free rate, r, 102.1950. Inflation is expected to average 1.70 year for the next 4 years after which time inflation is expected to average 5.2% a year. Assume that there is no maturity risk premium. An 11 year corporate bond has a yield of 8.95%, which includes a liquidity premium of 0.3%. What is its default risk premium? Do not round Intermediate calculations. Round your answer to two decimal places EN S tein

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