The real risk-free rate (r) is 2.8% and is expected to remain constant. Intation is expected to be 7% per year for each of the next four years and on thereafter The maturity risk premium (MRP) is determined from the formula: 0.11 - 19%, where is the security's maturity. The liquidity premium (L) on el BTR Warehousing's bonds is 1.05%. The following table shows the current relationship between bond ratings and default risk premiums (DRP); Default Risk Premium Rating U.S. Treasury AAA 0.60% AA 0.80% A 1.05 BE 1.45 BTR Warehousing issues 9-year, Ah-rated bonds. What is the yield on one of these bonda? Disregard crow-product terms; that is, averaging in required, use the arithmeti average. 10.84% 11.09% 11.89% 5.45% Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the silowing will be true? In theory, the yield on a bond with a longer maturity will be higher than the yield on a bond with a shorter maturity The yield on U.S. Treasury secunties always remains static