Suppose the real rate of interest is $3\%,$ maturity risk premium is $1\%,$ inflation premium is $4\%,$ the default risk on similar debt is $3\%,$ and the liquidity premium is $2\%.$ What is the nominal interest rate on this venture$$s debt capital?

a$.13\%$

b$.10\%$

c$.15\%$

d$.11\%$

e$.7\%$

What is the risk free rate?

a$.4\%$

b$.3\%$

c$.7\%$

d$.6\%$