Nikki G's Corporation's 10 -year bonds are currently yielding a return of 9.25 percent. The expected inflation premium is 2.0 percent annually and the real interest rate is expected to be 3.10 percent annually over the next 10 years. The liquidity risk premium on Nikki G's bonds is 0.1 percent. The maturity risk premium is 0.10 percent on two-year securities and increases by 0.05 percent for each additional year to maturity. Calculate the default risk premium on Nikki G's 10-year bonds. Multiple Choice 5.55 percent 5.65 percent 3.55 percent 1.85 percent Which of the following statements is correct? Multiple Choice The default risk premium of Baa 20-year corporate bonds over Aaa 20-year corporate bonds does not vary. The market segmentation theory assumes that borrowers and investors do not want to shift from one maturity sector to another without an interest rate premium. Real interest rates are the rates that are quoted in the news. All of these choices are correct