Eleanor Burns is attempting to find the nominal rate of interest for a security. She has gathered the following data:

Characteristic	Security
Time to maturity	12 years
Inflation expectation premium	6.0%
Risk premium for:
Liquidity risk	1.2%
Default risk	3.4%
Maturity risk	0.9%
Other risk	1.5%

.... a.If the real rate of interest is currently 3%, find the risk-free rate of interest applicable to the security.

b.Find the total risk premium attributable to the security's issuer and issue characteristics.

c.Calculate the nominal rate of interest for the security.