Question 4 5 Points As a financial analyst, you often advise companies what interest rates they can expect to pay on a new bond issue. You have been asked to estimate the interest rates on bonds that a company plans to sell in order to finance the construction of a new toll bridge. Long-term US Treasury Bonds currently pay just under 4% interest, and you know that investors usually consider these to be nearly risk-free investments. You expect that the rate of inflation (which was just 1% last year) to rise to 2% by the time that the company is ready to sell the bonds. You consider private toll bridges to be riskier than airport projects, but less risky than port projects. Interest rates on bonds issued by airports averaged 5.25% last year, while interest rates on port projects averaged 6.75% last year. What interest rate should you plan to pay on these bonds? A 9% B 8% 7% 5% E 6%