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Java Inc. has a 15-year bond with liquidity premium of 0.9%, maturity risk premium of 1.2%. The bond yield is 9.8%. The real risk-free rate

Java Inc. has a 15-year bond with liquidity premium of 0.9%, maturity risk premium of 1.2%. The bond yield is 9.8%. The real risk-free rate is 3.3% and average inflation for the period is 3.1%. What is the default risk premium for Java Inc bonds? Select one: O a 1.1% Ob 1.3% O c 14% Od 1.2%

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