Lee Corp's 5-year bonds yield 7.80%, and 5-year T-bonds yield 5.20%. The real risk-free rate is r* = 2.5%, the inflation premium for 5-year bonds is IP = 1.5%, and the default risk premium for Lee's bonds is DRP = 1.50% versus zero for T-bonds. The maturity risk premium for all bonds is found with the formula MRP=(T-1)x0.3% where T = number of years to maturity. What is the liquidity premium (LP) on Kay's bonds?

a) 2.10%
b) 3.40%
c) 1.80%
d) 4.20%