The risk premium for an investment is 3 percent. The inflation premium is 4 percent. If the pure rate of interest in the market is 3.5 percent, what should be the yield on arisk-freesecurity? Use exact formulation.

A.6.60%

B.8.68%

C.9.72%

D.7.12%

E.8.16%

F.7.64%

G.6.08%

H.9.20%