e) None of the above 16. Your assistant gathered the following financial data for Japan: The real 4 points risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. What is the required return on 2-year Treasury bond securities? Since the maturity is only 2 years we will assume that no premium should be required for the maturity risk. b) 89 C) 6.33% d) 8.33% e) None of the above 17. Strong Aviation had a profit margin of 6.25%, a total assets turnover of