The real risk free rate (r) is 2.80% and is expected to remain constant into the future. Inflation is expected to be 8.25% two years and 7.05% thereafter. The maturity risk premium (MPP) is determined from the formula: 0.10(t1) P. where t is the security's maturity. The liquidity premuem (LP) on all Berth Construction Inci's bonds is 0.60%. The foliowing table shows the current relabonship between bond ratings and default risk premiums (DRP): Berth Construction inc. issues fourteen+vear, Af-rated bonds. What is the rield on ore of these bonds? (Mint: Disregotd cross- Aioduct terms, that ith if averoging is roguired, use an arithimetic averoge.) 12.12% 5.504. 12.7216 11d28