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14. the real risk-free rate, r*, is 1.4%. Inflation is expected to average 1.2% a year for the next 4 years, after which time inflation

14. the real risk-free rate, r*, is 1.4%. Inflation is expected to average 1.2% a year for the next 4 years, after which time inflation is expected to average 4.3% a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 11.0%, which indicates a liquidity premium of 0.3%. What is its default risk premium? Do not round intermediate calculations

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