Suppose a 3-year corporate bond provides a coupon of $7 \%$ per year payable semiannually and has a yield of $5 \%$ (expressed with semiannual compounding). The yields for all maturities on risk-free bonds is $4 \%$ per annum (expressed with semiannual compounding). Assume that defaults can take place every 6 months (immediately before a coupon payment) and the recovery rate is $45 \%$. Estimate the hazard rate (assumed constant) for the three years. Assume that the probability of default immediately before a coupon payment is the default probability given by the hazard rate for the previous six months.