7. Panama Corporation's 5-year bonds yield 8%, and 5-year T-bonds yield 4.8%. 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 Panama'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 = (t - 1) ~ 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Panama's bonds? * O A) 1.31% OB) 2.00% C) 1.62% OD) 1.80% OE) None of the above