If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 10.2%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?

Select the correct answer.

a. 3.14%

b. 2.91%

c. 3.83%

d. 3.60%

e. 3.37%