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Bling Corporation's 7 -year bonds yield 7.75%, and T-bonds with the same maturity yield 2.50%. The default risk premium for Bling's bonds is DRP =4%,

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Bling Corporation's 7 -year bonds yield 7.75%, and T-bonds with the same maturity yield 2.50%. The default risk premium for Bling's bonds is DRP =4%, the liquidity premium on Bling's bonds is LP =1.25% versus zero on T-bonds, the inflation premium (IP) is 2.40%, and the maturity risk premium (MRP) on 7 -year bonds is 0.60%. What is the real risk-free rate, r ? \begin{tabular}{|l} \hline 4.30% \\ \hline 0.70% \\ \hline 0.50% \\ \hline0.70% \\ \hline0.50% \end{tabular}

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