The real risk-free rate (r) is 2.8% and is expected to remain constant. Infation is expected to be 6% per year for each of the next two years and 5% thereafter. The maturity risk premium (MRP) is determined from the formula: 0.1(t1)%, where t is the securicy's maturity. The liquidity premium (LP) on all Pellegrini Southern tnci's bonds is 1.05%. The following table shows the current relationship between bond ratings and default risk premiums (ORP): Pellegrini Southern Inc. issues 6 -year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if averaging is required, use the anthmetic average. 9.43% 9.98% 5.15% 10.48% Based on your understanding of the determinants of interest rates, if everything eise remains the same, which of the following will be true? An AAA-rated bend has less default risk than a BB-rated bend The yield on an AAA-rated bond will be higher than the vield on a BB-rated bond