A sixteen-year corporate bond is yielding 7.1% per year and sixteen-year Treasury bonds are yielding...

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A sixteen-year corporate bond is yielding 7.1% per year and sixteen-year Treasury bonds are yielding 5.9% per year. If the corporate bond's yield includes a 0.4% per year liquidity premium and a 1.1% per year maturity premium, what is its default premium? 1) 0.6% O2) 1.0% 3) 0.9% 4) 0.8% 5) 0.7%

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