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PLEASE READ QUESTION CAREFULLY AND DOUBLE CHECK THE QUESTION AND ALSO MULTIPLE CHOICE PLEASE. GIVE ME THE RIGHT ANSWER PLS THANK YOU I WILL GIVE U A THUMBS UP. PLS DOUBLE CHECK TO GET ANSWER RIGHT

The real risk-free rate on interest, r* is 3%, and it is expected to remain constant over time. Inflation is expected to be 4% per year for the next 2 years and 3.5% for the next 3 years. The MRP - 0.1 x(t-1%, where t= the bond's maturity. The default risk premium for a BBB-rated bond is 1.6%. Using the arithmetic average of the expected inflation, what is the yield on a 4-year Treasury bond? 8.65% 7.05% 7.10% 8 70% 17.00%

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