Keys Corporation's 5-year bonds yield 6.20% and 5-year T-bonds yield 4.40%. The real risk-free rate is r* = 2.5%, the inflation premium for 5-year bonds is IP =1.50%, the liquidity premium for Keys' bonds is LP = 0.5% versus zero for T-bond,
and the maturity risk premium for all bonds is found with the formula MRP = (t -1)*0.1%, where t=number of years to maturity. What is the default risk premium
