Niendorf Corporation's 5-year bonds yield 7.30% and 5-year T-bonds yield 5.70%.The real risk-free rate is r* = 3.00%, the inflation premium for 5-year bonds is IP = 2.20%, the liquidity premium for Niendorf's bonds is LP = 0.20% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t) 0.10%, where t = number of years to maturity.What is the default risk premium (DRP) on Niendorf's bonds?

a.1.10%

b.1.20%

c.1.30%

d.1.40%

e.1.50%