A Treasury bond that matures in 10 years has a yield of 5.75%. A 10-year corporate bond has a yield of 9.50%. Assume that the liquidity premium on the corporate bond is 0.65%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

The real risk-free rate is 3.0% and inflation is expected to be 2.25% for the next 2 years. A 2-year Treasury security yields 5.85%. What is the maturity risk premium for the 2-year security? Round your answer to one decimal place.

%