Suppose the real risk-free rate of interest is

4%

, the maturity risk premium is

2%

, the inflation premium is

6%

, the default risk premium on similar debt is

3%

, and the liquidity premium is

2%

. What is the nominal interest rate on this venture's debt capital?\ a.

15%

\ b.

16%

\ (c.)

17%

\ D.

14%

Suppose the real risk-free rate of interest is 4%, the maturity risk premium is 2%, the inflation premium is 6%, the default risk premium on similar debt is 3%, and the liquidity premium is 2%. What is the nominal interest rate on this venture's debt capital? a. 15% b. 16% c. 17% D. 14%