Question: Back to Assignment Attempts: Keep the Highest: 1 5. Problem 6.13 (Default Risk Premium) eBook The real risk-free rate, r. is 1.4%. Inflation is expected

Back to Assignment Attempts: Keep the Highest: 1 5. Problem 6.13 (Default Risk Premium) eBook The real risk-free rate, r". is 1.4%. Inflation is expected to average 1.1% a year for the next 4 years after which time inflation is expected to average 3.0 a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 11.1%, which includes a liquidity premium of 0.5%. What is a default premium? Do not round Intermediate calculations. Round your answer to two decimal places Save & Centine w without saving

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