Kern Corporation's $5-$year bonds yield $7\mathrm{.}50\%$ and $5-$year T$-$bonds yield $4\mathrm{.}30\%.$ The real risk$-$free rate is $r^{**}=2\mathrm{.}50\%,$ the default risk premium for Kern's bonds is DRP $=1\mathrm{.}90\%$ versus zero for T$-$bonds, the liquidity premium on Kern's bonds is LP $=1\mathrm{.}30\%,$ and the maturity risk premium for all bonds is found with the formula MRP $=(t-1)0\mathrm{.}1\%,$ where $t=$ number of years to maturity. What is the inflation premium $($IP$)$ on all $5-$year bonds?

a$.2\mathrm{.}00\%$

b$.1\mathrm{.}50\%$

c$.1\mathrm{.}37\%$

d$.1\mathrm{.}40\%$

e$.1\mathrm{.}90\%$