4.

Question 4 Sandino Corporation's 10 year, semiannual bond is currently selling at $850, with a coupon rate of 5% and a nominal rate (VTM) of 7.12%. Given an annual maturity risk premium (MRP) of (t-1)*0.10%, the band's liquidity premium (LP) of 0.40% and default risk premium (ORP) of 265%, what is the risk free trus)rate? Your answer should be between 1.50 and 3.58. rounded to 2 decimal places with no special characters