The real nsk-free rate (f) is 2.8%6 and is expected to remain constant. Inflation is expected to be 5% per vear for each of the next two years and 4% thereatier. The maturity risk premium (MRP) is determined from the formula: 0.1(t1)%, where t is the secunty's maturity, The liquidity premium ( P ) on all Simith and Carter Incis bonds is 0.55%. The following table shows the current relationship between bond ratings and default risk premiurns ( 0 ipP): Smuth and Carter Inc, issues thirteen year, M - rated bonds. What is the yield on onw of these bonds? Divegard cross-product terms; that is, if averaging is required, use the arthmetic average. 9.50% 10.30% 8.93%