Determinants of Interest Rate for Individual Securities A particular security$\text{'}$s default risk premium is $3\mathrm{.}60$ percent. For all securities$,$ the inflation risk premium is $2\mathrm{.}60$ percent and the real interest rate is $2\mathrm{.}55$ percent. The security$\text{'}$s liquidity risk premium is $1\mathrm{.}05$ percent and maturity risk premium is $1\mathrm{.}50$ percent. The security has no special covenants. What is the security$\text{'}$s equilibrium rate of return?

Multiple Choice

$4\mathrm{.}65\%$

$11\mathrm{.}30\%$

$22\mathrm{.}60\%$

$2\mathrm{.}26\%$