The real risk-free rate (*) is 2.80% and is expected to remain constant into the future. Inflation is expected to be 7.50% per year for each of the next four years and 6.30% thereafter. The maturity risk premium (MRP) is determined from the formula: 0.10 x (t-13%, where t is the security's maturity. The liquidity premium (LP) on all Gauge Imports Inc.'s bonds is 0.60%. The following table shows the current relationship between bond ratings and default risk premiums (DRP): Rating U.S. Treasury AAA AA Default Risk Premium 0.60% 0.80% 1.05% BBB 1.45% A Gauge Imports Inc. issues ten-year, AA-rated bonds. What is the yield on one of these bonds? (Hint: Disregard cross product terms; that is, if averaging is required, use an arithmetic average.) O 5.10% 10.98% 11.88% O 11.28%