Question 14 (6.25 points) The real risk-free rate, r', is 2.5%. Inflation is expected to average 2.8% a year for the next 4 years after which time inflation is expected to average 3.75% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yield of 8%, which includes a liquidity premium of 0.35%. What is its default risk premium? A) 1.68% B) 2.18% C) 1.48% OD) 1.88% OE) 2.28%