QUESTION 1 3 points Save Answer If the nominal rate of return on a corporate bond is 11%, the pure rate is 3%, and the risk premium is 4%, what is the inflation premium on this bond? a. 0.00%. b. 3.62% C. 4.00%. d. 7.12%. QUESTION 2 3 points Save Answer What is the real rate of interest on a corporate bond when the pure rate of interest is 3%, the inflation premium is 4%, and the risk premium is 5%? a. 7.12%. b. 8.15% C. 9.20%. d. 12.48%. QUESTION 3 3 points Save Answer What is the risk-free rate of interest when the pure rate and the inflation premium are both 4% and the risk premium is 5%? a. 8.0%. b. 8.2%. C. 9.2%. d. 13.6%. QUESTION 4 3 points Save Answer Gus Poyet, who lives in Chicago, recently purchased a Illinois state bond with a before-tax yield of 5%. If Gus's federal tax rate is 30% and state tax rate is 5%, what is the after-tax yield? a. 3.50%. b. 4.20%. C. 3.25%. d. 5.00%