A corporate 12 -year bond is yielding 7% per year, while a Treasury bond with the same maturity is yielding 5.0% per year, and the real risk-free rate is 1.4%. The average inflation premium is 2.4%, and the maturity risk premium is estimated to be .1(t1)%, where t is the number of years to maturity. Assume that the maturity risk premium is the same for both the Treasury bond and the corporate bond. If the liquidity risk premium is .8%, then what is the default risk premium on the corporate bond? 1.7% 1.5% 1.9% 1.8% 1.3%