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6. Keys Corporation's 5-year bonds yield 6.20% and 5-year T-bonds yield 4.40%. The real risk- free rate is r* = 2.5%, the inflation premium for

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6. Keys Corporation's 5-year bonds yield 6.20% and 5-year T-bonds yield 4.40%. The real risk- free rate is r* = 2.5%, the inflation premium for 5-year bonds is IP = 1.50%, the liquidity premium for Keys' bonds is LP = 0.5% versus zero for T-bonds, 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 default risk premium (DRP) on Keys' bonds? A. 1.17% B. 1.30% C. 1.43% D. 1.57% E. 1.73%

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