The table below presents data on the yields of various fixed-income instruments for the past two years (last year

is denoted as T1, whereas this year is considered as time T). Use these data to answer the following questions:

Instrument Maturity | Yield in year T1 | Yield in year T

Treasury Bill 91 days | 0.30% | 0.50%

AAA-rated Commercial Paper 91 days | 0.60% | 0.90%

Treasury Bond 10 years | 3.25% | 2.75%

AAA-rated Corporate Bond 10 years | 5.30% | 6.25%

(a.) Assuming that yield reported on the Treasury bill was a discount yield, calculate the bond equivalent yield on the three-month T-bill in year T?

(b.) What was the default premium on commercial paper last year?

.