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Part $1$

$($Default$-$risk premium$)$ At$$ present, $20-$year Treasury bonds are yielding $4\mathrm{.}9\%4\mathrm{.}9\%$ while some$20-$year corporate bonds that you are interested in are yielding $9\mathrm{.}6\%9\mathrm{.}6\%.$ Assuming that the$$ maturity$-$risk premium on both bonds is the same and that the$$ liquidity$-$risk premium on the corporate bonds is $0\mathrm{.}25\%0\mathrm{.}25\%$ while it is $0\mathrm{.}0\%0\mathrm{.}0\%$ on the Treasury$$ bonds, what is the$$ default$-$risk premium on the corporate$$ bonds? Note that a Treasuty security should have no$$ default$-$risk premium.