Assume that the real, risk$-$free rate of interest is expected to be constant over time at $2$ percent, and that the market expects inflation to be $6$ percent each year for the next six years, but to then average $3$ percent a year thereafter. Also assume that the maturity risk premium for all securities can be estimated as MRP $=(0\mathrm{.}15\%{)}^{**}(t-1),$ where $t$ is the number of periods until maturity. Finally assume that a $12-$year corporate bond has an annual yield of $9\mathrm{.}2$ percent. Given this information, determine the annual yield on a $10-$year bond if it has the same default risk and liquidity premium as the $12-$year bond.

$9\mathrm{.}35\%$

$9\mathrm{.}52\%$

$9\mathrm{.}25\%$

$9\mathrm{.}77\%$

$9\mathrm{.}20\%$