The real risk-free rate, r*, is 3.4%. Inflation is expected to average 2.5% a year for the next 4 years, after which time inflation is expected to average 3.5% a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 8.85%, which includes a liquidity premium of 0.6%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places. %