Let It be the market interest rate the borrower i pays at time t; let IR.. be the interest rate a borrower who has no default risk would pay at omet, and let DRP be the default risk premium borrower i must pay at time. Which of the following represents the default nsk premium (ORP)? IRrisk-frert O DRPU IR...preet O DRPU IR- IR-TResult IR DRP, IRmarket x I Rek.freet O DRP Suppose that in May 2016, Bloom & Sons Corporation issues a bond that pays 7.5%. At the same time, the US Treasury, when it issues debt, pays an interest rate of 2.55 must pay a DRP of 96 because the rate on Based on the formula for the default risk premium, is considered the risk free rate