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A corporation's 10-year bonds are currently yielding a return of 12.25 percent. The expected inflation premium is 2.75 percent annually and the real interest rate is expected to be 3.00 percent annually over the next 10 years. The liquidity risk premium on the corporation's bonds is 0.25 percent. The maturity risk premium is 0.25 percent on two-year securities and increases by 0.25 percent for each additional year to maturity. What is the default risk premium on the corporation's 10-year bonds? (Round your answer to 2 decimal places. Do not include a percentage sign.) Question 4 11 Upda Some availab A6 percent coupon bond, with 12 years left to maturity, is priced to offer a 6.5 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.25 percent. What is the change in price of the bond, in dollars? Assume semi- annual interest payments and $1,000 par value. (Round your answer to 2 decimal places. Do not include a dollar sign. If the price decreases, use a negative "-" sign. If the price increases, use a "+" sign.) D Question 5 10 pts A corporate bond with a 5 percent coupon has 10 years left to maturity. It has a credit rating of BBB and a yield to maturity of 8.0 percent. Recently, the firm has gotten into some trouble and the rating agency is downgrading the firm's bonds to BB. The new appropriate discount rate will be 9 percent. What will be the change in the bond's price, in dollars? Assume interest payments are paid semi-annually and par value is $1,000. (Round your answer to 2 decimal places. Do not include a dollar sign. If the price decreases, use a negative "-" sign. If the price increases, use a "+" sign.)