The real risk-free rote (r) is 2.8% and is expected to remain constant. Inflation is expected to be 8% per year for each of the next three years and 755 thereafter. The maturity risk premlum (MRP) is determined from the formula: 0.1(t1)%, where t is the security's maturity. The liquidity premium (LP) on all Lukin Holdings incis bonds is 1.05%. The following table shows the current relationship between bond ratings and default risk premlums (DRP): Uukin Holdings Inc. issues 7-year, AA-rated bonds. What is the yieid on one of these bonds? Disregard cross-procuct terms; that is, if averaging is recuired, use the arithmetic average. 11,63% 5.25% 12.68% 12.08% Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true? The yieid on U.S. Treasury securities always remains static. The yied on an AAR-rated bond will be lower than the yield on an AA,rated bond. Lukin Hoidings Inc. issues 7-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 arithmetic average. 11.63% 5.25% 12.68% 12,08% Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true? The yield on U.S. Treasury securities always remains static. The yieid on an MM-rated bond will be lower than the yield on an M-rated bond