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A 15-year, 6% semiannual corporate bond has the following risk premiums: Inflation risk premium = 100 bps Maturity risk premium = 75 bps Liquidity risk

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A 15-year, 6% semiannual corporate bond has the following risk premiums: Inflation risk premium = 100 bps Maturity risk premium = 75 bps Liquidity risk premium = 50 bps If the real risk-free rate is 5%, calculate the market price of the bond. $886.83. $692.55. $1,000

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