Suppose 10-year T-bonds have a yield of 4.70% and 10-year corporate bonds yield 8.15%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.15%. What is the default risk premium on corporate bonds?

a. 4.95%

b. 7.90%

c. 3.20%

d. 3.45%

e. 3.70%