Suppose the real risk-free rate is 4.20%, the average expected future inflation rate is 4.70%, and a maturity risk premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the years to maturity, hence the pure expectations theory is NOT valid. What rate of return would you expect on a 4-year Treasury security? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.

Group of answer choices

9.11%

10.88%

8.46%

11.35%

9.30%