You read in The Wall Street Journal that 30-day T-bills (risk-free security) currently are yielding 8 percent. Your brother-in-law, a broker at Kyoto Securities, has given you the following estimates of current interest rate premiums for BBB rated bonds: Liquidity premium 1% Maturity risk premium 2% Default risk premium 2% Based on these data, the rate of return on BBB rated bond is (Hint: use the rate of return formula in Chapters 6,7) a. 10% c. 12% b. 11% d. 13%