Assume That Over the Past 88 Years, U

Assume that over the past 88 years, U.S.Treasury bills had an average return of 3.5 percent as compared to 6.1 percent on long-term government bonds.During this same time period, assume inflation averaged 3.0 percent.What was the average nominal risk premium on the long-term government bonds?

A) 3.1 percent
B) .1 percent
C) 2.9 percent
D) 1.8 percent
E) 2.6 percent