The real risk$-$free rate is expected to remain constant at $3\%$ in the future, a $2\%$ rate of inflation is expected for the next $2$ years, after which inflation is expected to increase to $4\%,$ and there is a positive maturity risk premium that increases with years to maturity. Given these conditions, which of the following statements is CORRECT?

$\backslash$table$[[$a$.$ The yield on a $2-$year T$-$bond must exceed that on a $5-$year T$-$bond.$],[$b$.$ The yield on a $5-$year Treasury bond must exceed that on a $2-$year Treasury bond.$],[$c$.$ The yield on a $7-$year Treasury bond must exceed that of a $5-$year corporate bond.$],[$d$.$ The conditions in the problem cannot all be true$--$they are internally inconsistent.$],[$e$.$ The Treasury yield curve under the stated conditions would be humped rather than$],[$have a consistent positive or negative slope.$]]$

Koy Corporation's $5-$year bonds yield $8\mathrm{.}00\%,$ and $5-$year Tbonds yield $5\mathrm{.}15\%.$ The real risk$-$free rate is $r^{**}=3\mathrm{.}0\%,$ the inflation premium for $5-$year bonds is IP $=1\mathrm{.}75\%,$ the liquidity premium for Koy's bonds is $LP=0\mathrm{.}75\%$ versus zero for Tbonds, and the maturity risk premium for all bonds is found with the formula MRP $=(t-1)0\mathrm{.}1\%,$ where $t=$ number of years to maturity. What is the default risk premium $($DRP$)$ on Koy's bond

$\backslash$table$[[$a$.2\mathrm{.}16],[\%$