The Gergen Group's 5 -year bonds yield 6.85%, and 5 -year T-bonds yield 4.75%. The real risk-free rate is r= 3.4%, the default risk premium for Gergen's bonds is DRP =0.85% versus zero for T-bonds, the liquidity premium on Gergen's bonds is LP=1.25%, and the maturity risk premium for all bonds is found with the formula MRP =(t1)0.1%, where t= number of years to maturity. What is the inflation premium (IP) on 5 year bonds? Select the correct answer. a. 1.2394 b. 0.81% C. 1.09% d. 0.95% c. 0.6796 Reinegar Corporation is planning two new issues of 25 -year bonds. Bond Par will be sold at its $1,000 par value, and it will have a 10% semiannual coupon. Bond OID will be an Original Issue Discount bond, and it will also have a 25 -year maturity and a $1,000 par value, but its semiannual coupon will be only 3.25%. If both bonds are to provide investors with the same effective yield, how many of the OID bonds must Reinegar issue to raise $3,000,000 ? Disregard flotation costs, and round your final answer up to a whole number of bonds. Select the correct answer. a. 7,816 b. 7,812 c. 7,808 d. 7.820 e. 7,804