A ten-year Treasury bond is yielding 6.5% per year, which includes a 1.1% per year maturity premium. If a ten-year corporate bonds yield includes a 0.2% per year liquidity premium and a 1.7% per year default premium, what is the yield on the corporate bond?

Question 3 options:

1)

8.2%

2)

8.4%

3)

8.6%

4)

8.8%

5)

8.0%