You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 2.75 percent and the inflation…

You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 2.75 percent and the inflation premium is 3 percent. US Treasury bills are risk free. What should be the yield of the US Treasury bills? Use multiplicative form.

5.58%

5.06%

5.32%

6.09%

6.35%

5.83%