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Charlie, why don't you include the risk of default in your "ADJ" column?  

If you believe the numbers in the chart below it would seem that
for any Corp rated S&P BBB or below you would want to factor it
in explicitly.  

You've been very rigorous in your treatment of inflation and I 
would be interested in how you view default risk mathematically.

http://monevator.com/2010/04/09/bond-default-rating-probabil...

Cumulative Historic Default Rates (in percent)
                       Moody’s             S&P
Rating category     Muni     Corp     Muni     Corp
Aaa/AAA             0.00     0.52     0.00     0.60
Aa/AA               0.06     0.52     0.00     1.50
A/A                 0.03     1.29     0.23     2.91
Baa/BBB             0.13     4.64     0.32    10.29
Ba/BB               2.65    19.12     1.74    29.93
B/B                11.86    43.34     8.48    53.72
Caa-C/CCC-C        16.58    69.18    44.81    69.19
                
Averages                 
Investment grade    0.07     2.09     0.20     4.14
Non-invest grade    4.29    31.37     7.37    42.35
All                 0.10     9.70     0.29    12.98

Source: U.S. Municipal Bond Fairness Act, 2008.
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