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Consider the following yield curve i_1 = 6% k_1 = 7% i_2 = 4 % k_2 = 8% Calculate the marginal probability of default for

Consider the following yield curve

i_1 = 6% k_1 = 7%

i_2 = 4 % k_2 = 8%

Calculate the marginal probability of default for the first year.

(Round your answer to 3 decimal places. Do not express your answer in percentage term, e.g. if you answer is 5.1%, key in 0.051.)

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