A seven-year corporate bond is yielding 5.4% per year and seven-year Treasury bonds are yielding 4.7% per year. If the corporate bond's yield includes a 0.4% per year liquidity premium, what is its default premium? 1) 0.5% 2) 2) 0.3% 3) 0.4% 4) 0.2% 5) 0.6%