A firm has 5,000,000 shares of common stock outstanding, each with a market price of $8.00 per share. It has 25,000 bonds outstanding, each selling for $1100 with a $1000 face value. The bonds mature in 12 years, have a coupon rate of 9%, and pay coupons semi-annually. The firm's equity has a beta of 1.4, and the expected market return is 15%. The tax rate is 35% and the WACC is 14%. Calculate the risk-free rate.

	2.05%
	15.27%
	20.18%
	1.19%