7 Suppose 10-year T-bonds have a yield of 4.55% and 10-year corporate bonds yield 7.15%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.15%. What is the default risk premium on corporate bonds?

a. 2.60% b. 6.90% c. 2.85% d. 2.35% e. 4.80%

PLEASE ANSWER ASAP