You are considering an investment in $30-$year bonds issued by Corporation IBT. The bonds have no special covenants. The Wall Street Journal reports that $1-$year T$-$bills are currently earning $3\mathrm{.}25$ percent. Your broker has determined the following information about economic activity and Corporation IBT bonds.

$\backslash$table$[[\frac{O}{?},$Real risk$-$free rate,$=2\mathrm{.}25\%$