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Question 1 2 Points You are considering an investment in a AAA-rated U.S. corporate bond but you are not sure what rate of interest it

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Question 1 2 Points You are considering an investment in a AAA-rated U.S. corporate bond but you are not sure what rate of interest it should pay. Assume that the real risk-free rate of interest is 1.0%; inflation is expected to be 1.5%, the maturity risk premium is 2.5% and, the default risk premium for AAA rated corporate bonds is 3.5%. What rate of interest should the U.S. corporate bond pay? Assume that the liquidity premium for a AAA-rated U.S. corporate bond is zero. A) 8.5% B) 5.0% 6.0% 2.596

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