Meade Corporation bonds mature in 12 years and have a yield to maturity of 6.00 percent. Their par value is $1000. They have a 7.10 percent coupon rate, paid semiannually. Assuming that interest rates will not change during the coming year, the bonds' expected current yield is: Suppose the return on a 10-year Treasury bond is 8.20 percent and that on a 10-year Treasury Inflation Protected Security (TIPS) is 1.00 percent. Suppose also that the maturity risk premium on all 10-year bonds is 0.90 percent and that no liquidity risk premium is required on any Treasury security. The expected average inflation rate for the next 10 years is (approximately): If 10-year T-bonds yield 5.20 percent, 10-year corporate bonds yield 8.50 percent, the maturity risk premium on all 10-year bonds is 1.10 percent, and the liquidity risk premiums for corporate and Treasury bonds are 0.60 percent and 0.00 percent, respectively, what must be the default risk premium on the corporate bond? Assume that a stock is projected to be selling one year from now for $18.50 per share; the dividend is projected to be $1.25 per share at that time. If the required rate of return for this stock is 13 percent, its value is