Risk premium Eleanor Burns is attempting to find the nominal rate of interest for a security. She has gathered the following data: a. If the real rate of interest is currently 3%, find the risk-free rate of interest applicable to the security. b. Find the total risk premium attributable to the security's issuer and issue characteristics. c. Calculate the nominal rate of interest for the security. Click the icon to see the Worked Solution (Formula Solution). a. If the real rate of interest is currently 3%, the risk-free rate of interest applicable to the security is 9.0 %. (Round to one decimal place.) b. The total risk premium attributable to the security's issuer and issue characteristics is 4.6 %. (Round to one decimal place.) c. The nominal rate of interest for the security is 13.6 %. (Round to one decimal place.) Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Characteristic Time to maturity Inflation expectation premium Risk premium for: Liquidity risk Default risk Maturity risk Other risk Print Security 5 years 6.0% Done 0.8% 1.6% 1.1% 1.1% - X D Review Only