You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%. Your brother In-Law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:
Inflation premium= 3.25 %
Liquidity premium= 0.6%
Maturity risk premium= 1.8%
Default risk premium= 2.15%
On the basis of these data, what is the real risk-free rate of return?