Crockett Corporation's 5-Year Bonds Yield 6

Crockett Corporation's 5-year bonds yield 6.35%,and 5-year T-bonds yield 4.75%.The real risk-free rate is r* = 3.60%,the default risk premium for Crockett's bonds is DRP = 1.00% versus zero for T-bonds,the liquidity premium on Crockett's bonds is LP = 0.90% versus zero for T-bonds,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 inflation premium (IP) is built into 5-year bond yields?

A) 0.68%
B) 0.75%
C) 0.83%
D) 0.91%
E) 1.00%