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A company's 7-year bonds are yielding 6.75 percent per year. Treasury bonds with the same maturity are yielding 43 percent per vear and the real

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A company's 7-year bonds are yielding 6.75 percent per year. Treasury bonds with the same maturity are yielding 43 percent per vear and the real risk-free rate) 1.3 percent. The average inflation premium is 1.5 percent and the maturity risk premium is estimated to be 0.1(t-11% wheret-number of years to maturity. If the liquidity premium k 1.1 percent, what is the default risk premium on the corporate bonds? 1.35% 201% 1.57 1.78% OSAN

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