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A nominal risk-free rate is currently 1.5%. A broker at INV Securities, has given you the following estimates of current interest rate premiums: Inflation: 2%,

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A nominal risk-free rate is currently 1.5%. A broker at INV Securities, has given you the following estimates of current interest rate premiums: Inflation: 2%, Liquidity Risk Premium 1%, Maturity Risk Premium 2%, and Default Risk Premium 1%. Based on these data, what is the rate of short- term U.S. Treasuries? 3.5% 4.5% O 5.5% O 1.5%

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