Assume that a $3-$year Treasury bond has a maturity risk premium of $2\%,$ and that the real risk$-$free rate of interest is $3\%.$ If the expected inflation rate is $4\%$ next year, $5\%$ the second year, and $9\%$ the third year, what is the required rate of return on the T$-$bond? $7\%$

$8\%$

$9\%$

$10\%$

$11\%$Assume that a $3-$year Treasury bond has a maturity risk premium of $2\%,$ and that the real risk$-$free rate of interest is $3\%.$ If the expected inflation rate is $4\%$ next year, $5\%$ the second year, and $9\%$ the third year, what is the required rate of return on the T$-$bond? $7\%$

$8\%$

$9\%$

$10\%$

$11\%$