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10-year Treasury-bonds yield 4.2% and 10-year corporate bonds yield 7.15%. The maturity risk premium on both 10-year Treasury and corporate bonds is 1.3%. Corporate bonds

10-year Treasury-bonds yield 4.2% and 10-year corporate bonds yield 7.15%. The maturity risk premium on both 10-year Treasury and corporate bonds is 1.3%. Corporate bonds have a 0.65% liquidity premium, while T-bonds have a zero liquidity premium.

What is the default risk premium on corporate bonds?

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