Curtis Corporation's noncallable semiannual coupon bonds currently sell for $1,125. They have a 12-year maturity, an 8.0% coupon rate, and a par value of $1,000. What is their yield to maturity?

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* = 2.50%, 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 premium for all bonds is found with the formula MRP = (t 1) 0.15%, where t = number of years to maturity. What is the inflation premium (IP) on 5-year bonds?