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19. LSP Motors issues 10-year bond. Suppose you have the following info: Real risk-free rate = 3%, Inflation rate = 8% per year for each

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19. LSP Motors issues 10-year bond. Suppose you have the following info: Real risk-free rate = 3%, Inflation rate = 8% per year for each of next five years, 6% thereafter, MRP = 0.1*(t - 1) % where t is the security's maturity, LP = 0.55% and DRP=0.8%. What is the yield on this bond? O a) 9.75% O b) 9.25% ) O c) 9.00% d) 8.5% O e) None of the above

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