Question: Keys Corporation's 5 - year bonds yield 6 . 2 0 % and 5 - year T - bonds yield 4 . 4 0 %

Keys Corporation's 5-year bonds yield 6.20% 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 Tbonds, and the maturity risk premium for all bonds is found with the formula MRP =(t-1)0.1%, where t= number of years to maturity. What is the default risk premium (DRP) on Keys' bonds?
1.17%
1.30%
1.43%
1.57%
1.73%
 Keys Corporation's 5-year bonds yield 6.20% and 5-year T-bonds yield 4.40%.

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