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Stendardi Corporation's 5 - year bonds yield 7 . 5 0 % and 5 - year T - bonds yield 6 . 1 0 %

Stendardi Corporation's 5-year bonds yield 7.50% and 5-year T-bonds yield 6.10%. The real risk-free rate is r*=2.50%, the inflation premium for 5-year bonds is IP =3.00%, the liquidity premium for Stendardis bonds is LP =0.85% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP =(t)\times 0.12%, where t = number of years to maturity. What is the default risk premium (DRP) on Stendardis bonds?

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