Calculate default risk premium

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Reference no: EM131543353

NikkiG's Corporation's 10-year bonds are currently yielding a return of 6.25 percent. The expected inflation premium is 1.20 percent annually and the real risk-tree rate is expected to be 2.50 percent annually over the next ten years. The liquidity risk premium on NikkiG's bonds is 0.45 percent. The maturity risk premium Calculate the default risk premium on NikkiG's 10-year bonds. (Round your answer to 2 decimal places.)

Reference no: EM131543353

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