Suppose the real risk-free rate of interest is * = 4% and it is expected to remain constant over time. Inflation is expected to be 1.60% per year for the next two years and 3.90% per year for the next three years. The maturity risk premium is 0.1 x (t-1)%, where t is number of years to maturity, a liquidity premium is 0.35%, and the default risk premium for a corporate bond is 1.50%. The average inflation during the first 4 years is What is the yield on a 4-year Treasury bond? 6.75% 4.30% 07.05% 8.90% What is the yield on a 4-year BBB-rated bond 7.40% 8.90% 8.55% 7.05% If the yield on a 5-year Treasury bond is 7.38% and the yield on a 6-year Treasury bond is 7.88%, the expected inflation in 6 years is (Hint: Do not round intermediate calculations.)