The real risk-free rate, r, is 1.2%. Inflation is expected to average 1.1% a year for the next 4 years, after which time inflation is expected to average 3.8% a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 8.5%, which includes a liquidity premium of 0.2%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places. % A 5 -year Treasury bond has a 4.0% yield. A 10 -year Treasury bond yields 6.2%, and a 10 -year corporate bond yields 9.4%. The market expects that inflation will average 2.5% over the next 10 years ( IP10=2.5% ). Assume that there is no maturity risk premium (MRP =0 ) and that the annual real risk-free rate, r, will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP=LP=0.) A5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. What is the yield on this 5 -year corporate bond? Round your answer to one decimal place. % Continue without saving