Suppose the real risk-free rate is 3.5%, the average future inflation rate is 1%, a maturity premium of 0.08% per year to maturity applies, i.e., MRP = 0.08%(t), where t is the years to maturity. Suppose also that a liquidity premium of 1% 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. 2.14% 1.94% 1.74% 2.34% 2.54% Currently, 3-year Treasury securities yield 8.7\%, 7-year Treasury securtitis yietu 8.4%, and 10 -year Treasury securities yield 8.2%. If the expectations theory is correct, what does the market expect will be the yield on 3-year Treasury securities seven years from today? 7.73%