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Koy Corporation's 5-year bonds yield 6.80%, and 5-year T-bonds yield 4.45%. The real risk-free rate...

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Koy Corporation's 5-year bonds yield 6.80%, and 5-year T-bonds yield 4.45%. The real risk-free rate is r = 2.70%, the inflation premium for 5-year bonds is IP = 1.35%, the liquidity premium for Koy's bonds is LP -0.75% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP -(t-1) * 0.1%, wheret number of years to maturity. What is the default risk premium (DRP) on Koy's bonds? a 1.60% b. 3.10% C 1.20% O d. 1.95% e 235

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