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4. Problem 6.13 (Default Risk Premium) eBook The real rise tree rate, is 1.6%. Inflation is expected to average 1.4% a year for the next

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4. Problem 6.13 (Default Risk Premium) eBook The real rise tree rate, is 1.6%. Inflation is expected to average 1.4% a year for the next years, after which time inflation is expected to average 4.4% a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 9.4%, which includes a liquidity premium of 0.7%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places

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