14. Use the following information to calculate the interest rate on a issued by Becher Inc. 7-year bond just Inflation: first three years 2.5%, year 4 and beyond 4.5 % (so you need to determine INFL for this bond from chapter 5) Pure Rate 2.0% Maturity Risk Premium zero for a 1-year maturity, increasing by .1% each year thereafter (for example, draw a timeline, the end of first year (point 1) the premium is zero, the end of the second year (point 2), the premium is 0.1, and so on). Default Risk Premium 1.5 % Liquidity Risk Premium 1.0 % for treasuries; 0.5% for Corporate bonds Hint: K=Pure Rate + Inflation + MR + LR + DR Pure Rate+ Inflation Nominal risk-free rate T-bill rate a. 5.343% b. 6.343% c. 7.343% d. 848 7,243