MMM Inc planning issues 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 MMMs bonds is LP- 0.75% versus zero for T-bonds, and the maturity risk premium for all bonds is found with 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 decimal places)