0.85% O 0.79% O 1.74% 90-day 180-day 2-year 3-year 90-day O 1.00% 3-year 3-year Treasury bills Treasury bills Treasury notes Treasury notes With reference to the data above, what is the default risk premium on a 3-year corporate bond? Commercial paper Corporate bonds (AA) Municipal (AA) Expected 2-year inflation rate 8.36 percent 8.48 percent 8.90 percent 9.10 percent 9.15 percent 9.95 percent 7.07 percent 3.50 percent

With reference to the data above, what is the default risk premium on a 3-year corporate bond? 0.85% 0.79% 1.74% 1.00%