Problem $6-3$ Determinants of Interest Rates for Individual Securities $($LG$6-6)$

Dakota Corporation $15-$year bonds have an equilibrium rate of return of $9$ percent. For all securities$,$ the inflation risk premium is $1\mathrm{.}60$ percent and the real risk$-$free rate is $3\mathrm{.}30$ percent. The security$\text{'}$s liquidity risk premium is $1\mathrm{.}05$ percent and maturity risk premium is $1\mathrm{.}6$ percent. The security has no special covenants. Calculate the bond's default risk premium.

Note: Round your percentage answer to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34).$

Default risk premium

$\%$