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Question 2 10 pts You are considering an investment in 30-year bonds issued by a corporation. The bonds have no special covenants. The Wall Street

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Question 2 10 pts You are considering an investment in 30-year bonds issued by a corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 6.00 percent. Your broker has determined the following information about economic activity and the corporation bonds: Real interest rate = 4.50% Default risk premium = 3.25% Liquidity risk premium = 1.75% Maturity risk premium = 3.00% What is the fair interest rate on the corporation's 30-year bonds? (Round your answer to 2 decimal places, for example, type 5.00 for 5 percent. Do not include a percentage sign.) achian 2

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