Help Save TB MC Qu. 6-3 Determinants of Interest Rate for Individual Securities You are ... 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 Wa Street Journal reports that 1 year T-bills are currently earning 3.80 percent. Your broker has determined the following information about economic activity and the corporation's bonds Real Interest rate = 3.15% Default risk premium = 3.05% Liquidity risk premium = 1.35% Maturity risk premium = 2.80% What is the inflation premium? What is the fair interest rate on the corporation's 30-year bonds? Multiple Choice 65% and 2.20% respectively 3.80% and 1415% respectively 65% and 100%, respectively 65% and 10.35%, respectively