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The real risk-free rate of interest, r*, is 4%, and it is expected to remain constant over time. Inflation is expected to be 2% per

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The real risk-free rate of interest, r*, is 4%, and it is expected to remain constant over time. Inflation is expected to be 2% per year for the next three years, after which time inflation is expected to remain at a constant rate of 6% per year. The maturity risk premium is equal to 0.1(t-1)%, where t is the bond's time to maturity. The liquidity and default risk premia on 10- year corporate boeds are 2.0% and 2.5%, respectively. What is the yield to maturity on a 10- year Treasury bond? 8.8% O 9.7% O 10.3% 09.3% O 10.0%

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