QUESTION 14 Kern Corporation's 5-year bonds yield 6.60% and 5-year T-bonds yield 3.40%. The real risk-free rate is r* - 2.5%, the default risk premium for Kenn's bonds is DRP = 1.90% versus zero for T-bonds, the liquidity premium on Ker's bonds is LP = 1.3%, and the maturity risk premium for all bonds is found with the formula MRP-(t-1) 0.1%, where t = number of years to maturity. What is the inflation premium (IP) on all 5-year bonds? a. 0.38% b. 0.50% c.0.51% d.0.54% e. 0.48%