4. Johnson Corporation has 5-year bonds. Inflation premium (IP) on a 5 year bond is 1.00%. The real risk-free rate is r - 2.80%, the default risk premium for Johnson's bonds is DRP - 0.85% versus zero for T-bonds, the liquidity premium on Johnson's bonds is LP - 1.25%, and the maturity risk premium for all bonds is found with the formula MRP = (t-1) x 0.1%, where t number of years to maturity. What is the yield on Johnson Corporation's 5-year bonds? a. 1.40% b. 6.85% e. 1.71% d. 6.30% e. 2.06%