1. The real risk-free rate is 3%. The market expects that inflation of 3% for each of the next 5 years, and 5% a year thereafter. The maturity risk premium is estimated to be MRPt = 0.1%(t - 1). What is the yield on a Treasury bond that matures in 12 years?

   a. 8.10% b. 8.27% c. 8.45% d. 8.53% e. 8.68%