The Following Premiums Apply to a 6-Month Bond: Interest Rate

The following premiums apply to a 6-month bond: interest rate risk premium = .22%; real rate = 3.50%; default premium = .12%; inflation premium = 1.45%. What is the expected difference in nominal interest rates between a 6-month risky security and a 6-month, default-free security?

A) .12%
B) .34%
C) .37%
D) 1.57%
E) 1.60%