On the first day of your summer internship, you’ve been assigned to work with the chief financialofficer (cfo) of sanblas jewels inc. not knowing how well trained you are, the cfo has decidedto test your understanding of interest rates. specifically, she asked you to provide a reasonable estimateof the nominal interest rate for a new issue of aaa-rated bonds to be offered by sanblas jewelsinc. the final format that the chief financial officer of sanblas jewels has requested is that ofequation (2-1) in the text. your assignment also requires that you consult the data in table 2-2.some agreed-upon procedures related to generating estimates for key variables in equation (2-1)follow. a. the current 3-month treasury bill rate is 2.96 percent, the 30-year treasury bond rate is5.43 percent, the 30-year aaa-rated corporate bond rate is 6.71 percent, and the inflationrate is 2.33 percent. b. the real risk-free rate of interest is the difference between the calculated average yield on3-month treasury bills and the inflation rate. c. the default-risk premium is estimated by the difference between the average yield on aaaratedbonds and 30-year treasury bonds. d. the maturity premium is estimated by the difference between the average yield on 30-yeartreasury bonds and 3-month treasury bills. e. sanblas jewels’ bonds will be traded on the new york bond exchange, so the liquidity premiumwill be slight. it will be greater than zero, however, because the secondary market forthe firm’s bonds is more uncertain than that of some other jewel sellers. it is estimated at 4basis points. a basis point is one one-hundredth of 1 percent. now place your output into the format of equation (2-1) so that the nominal interest rate can be estimatedand the size of each variable can also be inspected for reasonableness and discussion withthe cfo.