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5. Le Corporation's 5-year bonds yield 6.30%, and 5-year T-bonds yield 4.B0%. The real risk-free rate is r 2.75%, the Inflation premium for 5-year bonds

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5. Le Corporation's 5-year bonds yield 6.30%, and 5-year T-bonds yield 4.B0%. The real risk-free rate is r 2.75%, the Inflation premium for 5-year bonds is IP = 1.65%, the default risk premium for Le's bonds is DRP 1.20% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP ( 1)x0.1%, wheret -number of years to maturity. What is the liquidity premium (LP) on Le's bonds? a. 0.49% b. 0.55% c. 0.61% d. 0.50% 0.30%

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