Drongo Corporation's $4-$year bonds currently yield $6\mathrm{.}8$ percent and have an inflation premium

of $3\mathrm{.}6\%.$ The real risk$-$free rate of interest, $r^{**},$ is $1\mathrm{.}7$ percent and is assumed to be constant. The maturity risk premium $($MRP$)$ is estimated to be $0\mathrm{.}1\%(t-1),$ where $t$ is equal to the time to

maturity. The default risk and liquidity premiums for this company's bonds total $1\mathrm{.}2$ percent and are believed to be the same for all bonds issued by this company. If the average inflation

rate is expected to be $5\mathrm{.}7$ percent for years $5$ and $6,$ what is the yield on a $6-$year bond for Drongo Corporation?

$8\mathrm{.}70\%$

$6\mathrm{.}70\%$

$8\mathrm{.}20\%$

$7\mathrm{.}70\%$

$7\mathrm{.}20\%$