The real risk-free rate (r) is 2.8% and is expected to remain constant. Inflation is expected to be 3% per year for each of the next four years and 2% thereafter. The maturity risk premium (MRP) is determined from the formula: 0.1(t1)%, where t is the security's maturity. The liquidity premium (LP) on all Rinsemator Group's bonds is 1,05%. The following table shows the current relationship between bond rotings and default risk premiums (DRP): Rinsemator Group issues nine-yeas, AA-rated bonds. What is the vield on one of these bonds? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average. 6.84% 7,89% 5.45% 7,09% Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true? An AAA-rated bond has less default risk than a BB-rated bond. A BBB-rated bond has a lower default risk premium as compared to an AAA-rated bond