The real risk-free rate, r*, is 2.05%. Inflation is expected to average 1.85% a year for the next 4 years, after which time inflation is expected to average 4.4% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yield of 9.9%, which includes a liquidity premium of 0.5%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places.