You Are Considering an Investment in a AAA-Rated U

You are considering an investment in a AAA-rated U.S.corporate bond but you are not sure what rate of interest it should pay.Assume that the real risk-free rate of interest is 1.0%; inflation is expected to be 1.5%; the maturity risk premium is 2.5%; and,the default risk premium for AAA rated corporate bonds is 3.5%.What rate of interest should the U.S.corporate bond pay?

A) 8.5%
B) 6.0%
C) 5.0%
D) 2.5%