KRE The real risk-free rate is 2%. Inflation is expected to be 1.2% this year, 2% next year, and 2.4% per year thereafter. The maturity risk premium is estimated to be 0.05 x (t-1)%, where t = number of years to maturity. The default risk premium and liquidity premium on a AAA bond are 0.4% and 0.2%, respectively. What is the yield on a 6-year Treasury security? K=K* +P+MRP a. 3.98 percent b. 3.78 percent c. 4.18 percent d. 4.26 percent e. 4.38 percent. Yrl 42