Question: EFG Co . s 3 0 - year bonds yield 9 . 7 6 % , and 3 0 - year T - bonds yield

EFG Co.s 30-year bonds yield 9.76%, and 30-year T-bonds yield 2.46%. The real risk-free rate is r*=-3.55%. The maturity risk premium is found with the formula MRP =(t -1) x 0.1% for all bonds, where t = number of years to maturity. What is the inflation premium (IP) on 30-year bonds?
-3.99%
7.30%
10.61%
1.81%
3.11%

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