Question 6 Suppose the real risk-free rate is 2.7%, the average future ination rate is 1.1%, a maturity premlum of 0.08% per year to maturity applies, l.e., MRP = 0.08%(t), where t is the years to maturity. Suppose also that a liquidity premlum of 0.9% and a default risk premium of 0.8% applies to A rated corporate bonds. How much higher would the rate of return be on a 10-year A-rated corporate bond than on a 5-year Treasury bond. Here we assume that the pure expectations theory is NOT valid, O 22% O 2.0% 2.3% 0 2.1% 0 2.4%