Question: Attempts: Keep the Highest: /1 13. Problem 6.11 (Default Risk Premium) eBook A company's 5-year bonds are yielding 9.6% per year. Treasury bonds with the

Attempts: Keep the Highest: /1 13. Problem 6.11 (Default Risk Premium) eBook A company's 5-year bonds are yielding 9.6% per year. Treasury bonds with the same maturity are yielding 6.3% per year, and the real risk-free rate (r) is 2.80%. The average inflation premium is 3.10%, and the maturity risk premium is estimated to be 0.1 x (t-1)%, wheret - number of years to maturity. If the liquidity premium is 1.25%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places

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