Determinants of Interest Rate for Individual Securities The Wall Street Journal reports that the current rate an to$-$year Treasury bonds is $7\mathrm{.}00$ percent, on $20-$year Treasury bonds is $7\mathrm{.}50$ percent, and on a $20-$year corporate bond is $9\mathrm{.}00$ percent. Assume that the maturity risk premium is zero. If the default risk premium and liquidity risk premium on a $10-$year corporate bond is the same as that on the $20-$year corporate bond, what is the current rate on a $10-$year corporate bond.

Multiple Choice

$8\mathrm{.}50\%$

$9\mathrm{.}00\%$

$7\mathrm{.}83\%$

$9\mathrm{.}33\%$