Corporations can not print money and it is possible to default if they do not make their payments on time. They hold default risk, i.e., the risk that a bond issuer may default on its obligations. In order to invest in the bonds of corporations with higher default risk, investors require higher returns than the yields on government bonds. The higher the default risk, the higher is the yield on the bonds. The difference between the promised yield on the corporate bond and the yield on government bond with the same coupon rate and maturity is called default premium. The higher the probability of being defaulted, the higher default premium will be. Therefore, the correct option is A.