7. The Gergen Group's 5-year bonds yield 6.85%, and 5-year T-bonds yield 4.75 %. The real risk- free rate is r* 2.80 %, the default risk premium for Gergen's bonds is DRP 0.85 % versus zero for T-bonds, the liquidity premium on Gergen'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 inflation premium (IP) on a 1.40% b1.55% 5-year bonds? c. 1.71% d. 1.88% e. 2.06%