Keys Corporation's 5-Year Bonds Yield 5 $\times$ 0)1%,where T = Number of Years to Maturity

Multiple Choice

Keys Corporation's 5-year bonds yield 5.10% and 5-year T-bonds yield 4.40%.The real risk-free rate is r* = 2.5%,the inflation premium for 5-year bonds is IP = 1.50%,the liquidity premium for Keys' bonds is LP = 0.5% versus zero for T-bonds,and the maturity risk premium for all bonds is found with the formula MRP = (t - 1) $\times$
0) 1%,where t = number of years to maturity.What is the default risk premium (DRP) on Keys' bonds?

A) 0.17%
B) 0.20%
C) 0.24%
D) 0.19%
E) 0.22%