:00 Time Left:0:39:38 Matthew Schindler: Attempt 1 Question 11 (2 points) The real risk-free rate of interest is expected to remain constant at 3.5%. Inflation rate is expected to be 2.5% this year, 2.2% next year and 2.3% per year thereafter. The maturity risk premium (MRP) is equal to 0.14(t-1)%, where t = the bond's maturity. A 6-year corporate bond yields 8%. What is the yield on a 8-year corporate bond that has the same default risk and liquidity premiums as the 6-year corporate bond? A) 8.44% B) 8.88% OC) 8.31% OD) 8.63% OE) 8.28% Page 11 of 12 Previous Page Next Page