Suppose the real risk-free rate is 3.1%, the average future inflation rate is 4.6%, a maturity premium of 0.05% per year to maturity applies, i.e., MRP = 0.05%(t), where t is the years to maturity. Suppose also that a liquidity premium of 0.9% and a default risk premium of 0.9% applies to A-rated corporate bonds. How much higher would the rate of return be on a 8-year A-rated corporate bond than on a 5-year Treasury bond. Here we assume that the pure expectations theory is NOT valid. 1.95% 2.15% 2.35% 2.55% 2.75%