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The real nisk hiee rate, r, in 1.4%. Inflation is expected to average 1.3 s a year for the next 4 years, after which time

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The real nisk hiee rate, r, in 1.4%. Inflation is expected to average 1.3 s a year for the next 4 years, after which time inflocion is expected to avernge 4.4% a year. Assume that there is no matunity nsk premuam. A 19 - vear corporate bond tws a. vield of 8.2%, which indudes a hiquidity premium of 0.4 . Wh. What is its defaul risk premium? Do not round itternediote cakculations. Round your amse to tho decimal riaces

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