A firm plans to issue a 15-year bond. So it needs to estimate the initial bond yield (coupon rate) at this bond issuance with the following information: the 10-year treasury bond yield is 3.8%, the inflation premium (IP) is 2.0%, the liquidity premium (LP) is 0.8%, the default risk premium (DRP) is 1.2%, and the maturity risk premium (MRP) is 0.5%.

Group of answer choices

4.5%

5.8%

6.3%

5.1%