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5 points If 1 0 - year T - bonds have a yield of 6 . 2 % , 1 0 - year corporate bonds

5 points
If 10-year T-bonds have a yield of 6.2%,10-year corporate bonds yield 8.25%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?
0.0175
0.0170
0.0165
0.0180
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