Suppose 10-year T-bonds have a yield of 5.15% and 10-year corporate bonds yield 6.90%. 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. 1.75%

b. 2.00%

c. 1.50%

d. 6.65%

e. 5.40%