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Koy Corporation's s-year bonds yield 8.00%, and 5-year T-bonds yield 5:15%. The real risk-free rate is r* - 3.0%, the inflation premium for 5-year bords

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Koy Corporation's s-year bonds yield 8.00%, and 5-year T-bonds yield 5:15%. The real risk-free rate is r* - 3.0%, the inflation premium for 5-year bords is IP - 1.75%, the liquidity premium for Koy's bonds is LP -0.75% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP-(t-1) * 0.1%, wheret - number of years to maturity. What is the default risk premium (DRP) on Koy's bonds? O a. 2.12% b.2.10 o 0 c.2.48% d. 2.18 6.2.10 Olenko

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