A Treasury bond due in one year has a yield of 5.7%; a Treasury bond due in 5 years has a yield of 6.2%. A bond issued by Ford due in 5 years has a yield of 7.5%; a bond issued by Shell Oil due in one year has a yield of 6.5%. The default risk premiums on the bonds issued by Shell and Ford, respectively, are:

a. 0.8% and 1.3%.

b. None of the options are correct.

c. 0.7% and 1.5%.

d. 1.2% and 1.0%.

e. 1.0% and 1.2%.