Consider two bonds that are identical in terms of maturity and other

characteristics $--$ how they differ is risk. Bond $A$ is issued by a corporation

offering interest of $4$ percent annually, and Bond B is a US Treasury bond

offering interest of $2\mathrm{.}75$ percent annually.

From this, we can guess the default risk premium is

percent. $$

Enter only numbers, a decimal point, and$/$or a negative sign as needed. Round your

final answer to two decimal places as necessary.