Corporate debt for Bongo Corp is AA-rated and is quite liquid with a premium of only 0.20%. AA-rated bonds with a maturity of 7 years have a premium of 3.5% and U.S. Treasuries that mature in 7 years yield 4.5%. If the inflation premium for 7 years is 3.0%, then what is the yield on a Bongo Corp. 7-year bond?

a. 4.5%

b. 7.5%

c. 8.0%

d. 8.2%

e. 11.20%