The Following Premiums Apply to a 8-Month Bond: Interest Rate

The following premiums apply to a 8-month bond: interest rate risk premium = 0.32 percent; liquidity premium = 0.44 percent; default premium = 1.23 percent; inflation premium = 3.12 percent; real rate = 3.20 percent.What is the expected nominal interest rate on a 8-month risky security given these values?

A) 5.85 percent
B) 6.45 percent
C) 7.55 percent
D) 8.31 percent
E) 9.30 percent