The composite interest rate (what the market price is) includes, just the pure interest rate none of the above. the pure interest rate plus allowances for financial uncertainty, tax preferences, and anticipated effect of price level changes. the inflation premium minus the pure rate.

the pure interest rate plus allowances for financial uncertainty, tax preferences, and anticipated effect of price level changes

Explanation:

The rate of the compound interest involved the rate of interest i.e. pure also the allowance for the financial i.e. uncertainity, the preference of taxes, and the expected impact of the change in the price level

Therefore as per the given situation, the option 2 is correct as it represents the market price or the compound rate of interest

Therefore the same is to be considered

answer; ///product strategy;