4. 90-day T-bills are currently yielding 5 percent and the following estimates of current interest rate premium: • The real risk-free rate = 1% • Default risk premium (DRP) = 1.75% • Liquidity premium (LP) = 0.8% • Maturity risk premium (MRP) = 1.25% On the basis of these data, what is the inflation premium (IP) ?
