Average annual returns on Canadian Common stocks, Canadian corporate bonds, small stocks and T-bills and the average annual rate of inflation were:

Canadian Equity: 11.5%

Canadian Bonds: 9.7%

Canadian Small Cap Equity: 12.8%

Canadian Treasury Bills: 7.4%

Canadian Inflation rate: 4.5%

Given this information, what was the risk premium an investor earned if they invested in Canadian Bonds?

a) 1.8%. b) 2.3%. c) 4.1%. d) 5.2%. e). 7.0%