Available info: (a) Return of ABC, 30 year corporate bond is 9%; (b) these bonds are regularly traded and very liquid; (c) the current and expected inflation rate is 3%; (d) return on U.S. treasury bill is 4%; and (e) return on 30 year U.S. treasury bond is 6%. Which is true?

A) the real risk free rate is 2%

B) the return on the U.S. treasury bond includes an interest rate risk premium of 4%

C) the return on the corporate bond includes a default risk premium of 4%

D) the return on the corporate bond includes a liquidity risk premium of 2%

E) the return on the corporate bond includes a default risk premium of 3%