A credit analyst is analyzing a 3-year, 5% annual coupon corporate bond. The analyst estimates that if the bond was default-risk free, it would trade at 104.20 per 100 of par and that the credit valuation adjustment should be 6.05 per 100 of par. If the 3-year government benchmark bonds yield is 3.50%, the bonds corporate bonds expected credit spread is closest to:

a)2.19%

B)2.09%

C)1.95%