Suppose You Observed That Five-Year Government Bonds Are Trading at a YTM

Suppose you observed that five-year government bonds are trading at a YTM of 5.75 percent.The yield spread between AAA- and BBB-rated corporate bonds is 130 basis points.The maturity yield differential between the three-year and five-year government bonds is 45 basis points.What yield would you expect to observe on BBB-rated corporate bonds with three years to mature?

A) 5.30%
B) 6.60%
C) 7.05%
D) 7.50%