You Read in the Wall Street Journal That 30-Day T-Bills

You read in The Wall Street Journal that 30-day T-bills currently are yielding 8 percent.Your brother-in-law, a broker at Kyoto Securities, has given you the following estimates of current interest rate premiums: $\begin{array}{llcc} \text { Inflation premium } &5\%\\ \text { Liquidity premium } &1\%\\ \text { Maturity risk premium } &2\%\\ \text { Default risk premium } &2\%\\\end{array}$
Based on these data, the real risk-free rate of return is

A) 0%
B) 1%
C) 2%
D) 3%
E) 4%