The real risk free rate (r*) is 3%. Inflation, over the next 5 years, is expected to average 3%. The Default Risk Premium for AAA rate borrowers is 1%. The Liquidity Premium for AAA borrowers is 1%. The Maturity Risk Premium for 5 year bonds is 2%. Big Company, a AAA rated company, intends to issue bonds with a 5 year maturity. At what rate of interest should Big Company expect to issue its bonds? a. 6% b. 7% c.8% d. 9% e. 10%