CMS Corporation's balance sheet as of today is as follows: The bonds have a 7.2% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt? Select the correct answer. a. $7,247,219 b. $7,249,374 c. $7,248,656 d. $7,247,937 e. $7,246,500 The Gergen Group's 5 -year bonds yield 6.85%, and 5 -year T-bonds yield 4.75%. The real risk-free rate is r=2%, the default risk premium for Gergen's bonds is DRP =0.85% versus zero for T-bonds, the liquidity premium on Gergen's bonds is LP=1.25%, and the maturity risk premiun for all bonds is found with the formula MRP =(t1)0.1%, where t= number of years to maturity. What is the inflation premium (IP) on 5 year bonds? Select the correct answer. a. 2.12% b. 2.81% c. 2.35% d. 1.89% e. 2.58%