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A treasury bond due in one year has a yield of 2.40% while a treasury bond due in 5 years has a yield of 4.50%.

A treasury bond due in one year has a yield of 2.40% while a treasury bond due in 5 years has a yield of 4.50%. A bond due in one year issued by High Country Marketing Corporation has a yield of 5.06% while a bond due in 5 years issued by High Country Marketing Corporation has a yield of 6.54%. The default risk premiums on the one-year and 5-year bonds issued by High Country Marketing Corp. are respectively __________ and __________.

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A. 2.66% and 2.04%

B. 3.32% and 2.88%

C. 2.89% and 2.47%

D. 3.25% and 2.83%

E. 2.71% and 2.29%

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