You analyze a bond and calculate the following: the inflation risk premium is 2.45%, the real risk-free rate is 0.92%, the bonds liquidity premium is 4.25%, the bonds maturity premium is 1.51%, the bonds default risk premium is 2.57%. The bond has no special covenants or provisions. Calculate the fair interest rate on the bond. Suppose that new regulations on investment banks restrict their ability to trade securities and thus make it more difficult to sell the bond in the secondary market. Which of the following ranges includes a realistic interest rate on the bond after these changes? (Note: You will not be able to precisely calculate the new interest rate).

Group of answer choices

Between 9.0% and 10.4%

Between 10.5% and 11.6%

Between 11.7% and 12.5%

Less than 8.9%