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Suppose 10-year T-bonds have a yield of 3.20% and 10-year corporate bonds yield 6.40%. Also, corporate bonds have a 0.58% liquidity premium versus a zero

Suppose 10-year T-bonds have a yield of 3.20% and 10-year corporate bonds yield 6.40%. Also, corporate bonds have a 0.58% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.45%. What is the default risk premium on corporate bonds?

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