Question: If ten year T-bonds have a yield of 5.2 percent, 10-year corporate bonds yield 7.5 percent, the maturity risk premium on all 10-year bonds is 1.1 percent, and corporate bonds have a 0.2 percent liquidity premium versus a zero liquidity premium for T-bonds, determine the default risk premium on the corporate bond?
[A] 2.20%
[B] 2.30%
[C] 2.00%
[D] 2.10%