Attempts Do No Harm / 1 4. Problem 6.11 (Default Risk Premium) eBook A company's 5-year bonds are yielding 8% per year. Treasury bonds with the same maturity are yielding 4.3% per year, and the real risk-free rate (r*) is 2.05%. The average inflation premium is 1.85%, and the maturity risk premium is estimated to be 0.1 x (t-1)%, where t = number of years to maturity. If the liquidity premium is 0.6%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places. % Grade it Now Save & Continue Continue without saving