A twelve-year corporate bond is yielding 4.8% per year and twelve-year Treasury bonds are yielding 4.2% per year. If the corporate bonds yield includes a 0.2% per year liquidity premium and a 0.3% per year maturity premium, what is its default premium?

1)

0.5%

2)

0.3%

3)

0.4%

4)

0.6%

5)

0.2%