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Question 12 6 pts A company's 5-year bonds are yielding 7.75% per year. Treasury bonds with the same maturity are yielding 52% per year, the

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Question 12 6 pts A company's 5-year bonds are yielding 7.75% per year. Treasury bonds with the same maturity are yielding 52% per year, the real risk-free rate (r*) is 2.3%. The average inflation premium is 2.5%, and the maturity risk premium is estimated to be 0.1 x (t-1)%, where t-number of years to maturity. If the liquidity premium is 1%, what is the default risk premium on the corporate bonds? 1.00% O 255% 1.55% 6 8 9

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