A company has issued one-and two-year bonds providing 6% coupons, payable annually. The yields on the bonds (expressed with continuous compounding) are 5.0% and 5.5% p.a., respectively. Risk-free rates are 2% p.a. for all maturities with continuous compounding. The recovery rate is 40%. Defaults can take place halfway through each year. Estimate the risk-neutral default rate each year.