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Kelly Inc's S - year bonds yield 6 . 5 0 % . The real risk - free rate is r * = 2 .

Kelly Inc's S-year bonds yield 6.50%. The real risk-free rate is r*=2.5%, the default risk premium forKelly's bonds is DRP -0.40%. the liquidity premium on Kelly's bonds is LP =1.3%, and the inflationpremium (IP) is 1.5%. What is the maturity risk premium (MRP) on all 5-year bonds?? a.0.40%b.0.80%c.0.50% d.1.80% c.2.12%

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