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Crockett Corporation's 5-year bonds yield 6.35% and 5 -year T-bonds yield 4.45%. The real risk-free rate is r=3.00%, the default risk premium for Crockett's bonds

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Crockett Corporation's 5-year bonds yield 6.35% and 5 -year T-bonds yield 4.45%. The real risk-free rate is r=3.00%, the default risk premium for Crockett's bonds is DRP=1.00% versus zero for T-bonds, the liquidity premium on Crockett'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 = (t1)0.1%, where t= number of years to matunty. What inflation premium ( (P) is built into 5 -year bond yields? 1.01% 1.22% 1.23% 1.26% 1.05%

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