Question: PLEASE READ QUESTION CAREFULLY AND DOUBLE CHECK THE QUESTION AND ALSO MULTIPLE CHOICE PLEASE. GIVE ME THE RIGHT ANSWER PLS THANK YOU I WILL GIVE

 PLEASE READ QUESTION CAREFULLY AND DOUBLE CHECK THE QUESTION AND ALSO

PLEASE READ QUESTION CAREFULLY AND DOUBLE CHECK THE QUESTION AND ALSO MULTIPLE CHOICE PLEASE. GIVE ME THE RIGHT ANSWER PLS THANK YOU I WILL GIVE U A THUMBS UP. PLS DOUBLE CHECK TO GET ANSWER RIGHT

The real risk-free rate on interest, r* is 3%, and it is expected to remain constant over time. Inflation is expected to be 4% per year for the next 2 years and 3.5% for the next 3 years. The MRP - 0.1 x(t-1%, where t= the bond's maturity. The default risk premium for a BBB-rated bond is 1.6%. Using the arithmetic average of the expected inflation, what is the yield on a 4-year Treasury bond? 8.65% 7.05% 7.10% 8 70% 17.00%

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