Determinants of Interest Rate for Individual Securities You are considering an investment in 30-year bonds issued by a corporation The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 3.90 percent. Your broker has determined the following information about economic activity and the corporation's bonds: Real interest rate =2.70% Default risk premium =2.15% Liquidity risk premium =.90% Maturity risk premium =1.90% What is the inflation premium? What is the fair interest rate on the corporation's 30-year bonds? Multiple Choice 1.20% and 7.65%, respectively 3.90% and 11.55%, respectively 1.20% and 1.77%, respectively 1.20% and 8.85%, respectively