You observe the following:

real risk-free rate: 1.6%

expected inflation rate: 7.2% this year, 5.4% next year, 3.8% the year after next, 2.0% then on

Maturity Risk Premium: 0.132*(t - 1)%; t = years of maturity

Liquidity Risk Premium: 0.35%

Default Risk Premium: 0.70%

What is the yield on a 5-year corporate bond?

6.91%

6.21%

6.61%

7.26%