Question: show all work 1. Find the default risk premium for a debt security given the following info: inflation premium=3%, maturity risk premium= 2.5%, real rate=3%,

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1. Find the default risk premium for a debt security given the following info: inflation premium=3%, maturity risk premium= 2.5%, real rate=3%, liquidity premium=0% and market interest rate is 10%.

2. Find the default risk premium for a debt security given the following information: inflation premium=2.5%, maturity risk premium=2.5%, real rate=3%, liqudity premium=1.5% and nominal interest rate =14%.

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