You are comparing a $10-$year, $3\%$ U$.$S$.$ government zero coupon bond $($which is priced to yield $4\%)$ to a $10-$year, $3\%$ coupon bond issued by the Aerocar Motor $Co.($which is priced to yield $5\%).$ The difference between the two yields is due to:

maturity premium

II$.$ default premium

III. liquidity premium

III only

II and III

I only

II only