You want to invest in India. You checked the Indian government rupee bond rate is 8.6%. the local currency rating from Moodys was Baa3 and the default spread for a Baa3 rated country bond is 2.5%. And US government bond rate is 4.5%. What is the risk-free rate that you should use?

Group of answer choices

2.5%

4.5%

8.6%

6.1%