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 = 2.95% Default risk premium = 2.65% Liquidity risk premium = 1.15% Maturity risk premium = 2.40% What is the inflation premium? What is the fair interest rate on the corporation's 30-year bonds? Multiple Choice .95% and 9.15%, respectively .95% and 2.02%, respectively 3.90% and 13.05%, respectively .95% and 10.10%, respectively