Assume that the corporate bonds of your company are yielding 9 percent per year, while Treasury bonds, with the same maturity, are yielding 7.8 percent per year. Also assume that the real risk- free rate (K*) has not changed in recent years and has been constant at 3 percent, that the average inflation premium is 2.5 percent, that the liquidity premium for the corporate bond is 0.5 percent, that the default risk premium for the corporate bond is 0.7%, and that the maturity risk premium takes the form MRP = 0.1% (t-1), where t = number of years to maturity. Given this information, determine the number of years until the corporate bond matures. O 21 years O 15 years O 18 years O 12 years O 24 years

Assume that the corporate bonds of your company are yielding 9 percent per year, while Treasury bonds, with the same maturity, are yielding 7.8 percent per year. Also assume that the real riskfree rate (K) has not changed in recent years and has been constant at 3 percent, that the average inflation premium is 2.5 percent, that the liquidity premium for the corporate bond is 0.5 percent, that the default risk premium for the corporate bond is 0.7%, and that the maturity risk premium takes the form MRP=0.1%(t1), where t= number of years to maturity. Given this information, determine the number of years until the corporate bond matures. 21 years 15 years 18 years 12 years 24 years