Use the following interest rate data to answer the question(s) below.

90-day Treasury bills 8.36 percent

180-day Treasury bills 8.48 percent

2-year Treasury notes 9.10 percent

3-year Treasury notes 9.25 percent

90-day Commercial paper 9.15 percent

3-year Corporate bonds (AA) 10.10 percent

3-year Municipal (AA) 7.07 percent

Expected 2-year inflation rate 3.50 percent

With reference to the data above, what is the default risk premium on 3-year AA-rated corporate bonds?

A. 0.85%

B. 0.95%

C. 3.03%

D. 6.60%