MMM Inc. planning issue bonds maturing in 5-years. The real risk-free rate is 3.00%, the inflation is expected to be 1.25% first year, 1.50%

second year,2% third year,3 % fourth and 2% fifth year. the liquidity premium for MMM' bonds is LP = 0.75% versus zero for T-bonds, and

the maturity risk premium for all bonds is found with the formula MRP = (t - 1) ' 0.1%, where t= number of years to maturity and the

default risk premium (DRP) on MMMs' bonds 0.75% what is the required rate of return on this bond?(round to 2 dp)