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 1.65%, the default risk premium for Panama's bonds is 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 on Panama's bonds? * O A) 1.31% ) B) 2.00% O C) 1.62% C) D) 1.80% OE E) None of the above 8. Kelly Inc's 5-year bonds yield 7.50% and 5-year T-bonds yield 4.90%. The real risk- free rate is r* = 2.5%, the default risk premium for Kelly's bonds is DRP = 0.40%, the liquidity premium on Kelly's bonds is LP = 2.2% versus zero on T-bonds, and the inflation premium (IP) is 1.5%. What is the maturity risk premium (MRP) on all 5-year bonds? * A) 0.73% B) 0.81% C) 0.90% O D) 0.99% D) O E) None of the above