Chris Corporation's 5-year bonds yield 6.45%, and 5-year T-bonds yield 4.55%. The real risk-free rate is r* = 3.80%, the default risk premium for Becky corp's bonds is DRP = 1.00% versus zero for T-bonds, the liquidity premium on Becky Corp's bonds is LP = 0.90% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t 1) 0.1%, where t = number of years to maturity. What inflation premium (IP) is built into 5-year bond yields?

a. 0.35% b. 0.25% c. 0.23% d. 0.31% e. 0.21%