You Are Given the Following Data

Multiple Choice

You are given the following data:
R* = real risk-free rate
= 4%Constant inflation premium
= 7%Maturity risk premium
= 1%Default risk premium for AAA bonds
= 3%Liquidity premium for long-term T-bonds
= 2%Assume that a highly liquid market does not exist for long-term T-bonds,and the expected rate of inflation is a constant.Given these conditions,the nominal risk-free rate for T-bills is ____,and the rate on long-term Treasury bonds is ____.

A) 4%;14%
B) 4%;15%
C) 11%;14%
D) 11%;15%
E) 11%;17%