The Gergen Group's 5-year bonds yield 6.85%, and s-year T-bonds yield 4.75%. The real risk-free rate is r* *2.0%, 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 (t - 1) * 0.1%, where t number of years to maturity. What is the inflation premium (IP) on 5-year bonds? Select the correct answer a. 1.459 b. 1.70% c1.95% d. 1.209 e. 2. 20% 9:54 PM 10022021 T S