The Long Term Inflation Rate Average Was 3

Multiple Choice

The long term inflation rate average was 3.2% and you invested in long term corporate bonds over the same period which earned 6.1%. What was the average risk premium you earned and your precise rate of return?

A) 2.9%; -2.9%
B) 9.3%; 10.3%
C) 2.9%; 2.81%
D) cannot be determined