Question: please answer Rivendell corp. is determining interest rates for their new issues of bonds. Current real risk-free rate is 0.1%, inflation premium is 0.5%. If

please answer

Rivendell corp. is determining interest rates for their new issues of bonds. Current real risk-free rate is 0.1%, inflation premium is 0.5%. If Rivendell's default risk premium is 1%, liquidity premium is 0.5% and maturity risk premium is 0.92%, what is the required return on their bonds? Select one: a. 2.00% b. 4.00% c. 1.92% d. 3.02% e. 3.92%

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