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A corporation's 9-year bonds have a yield to maturity of 11.60%. On the other hand, 9-year T-bonds yield 6.20%. The real risk- free rate is

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A corporation's 9-year bonds have a yield to maturity of 11.60%. On the other hand, 9-year T-bonds yield 6.20%. The real risk- free rate is 1.50%, the inflation premium for 9-year bonds is 3.90%, the default risk premium for Kay's bonds is 1.30%, and the maturity risk premium for all bonds is found with the formula MRP (t-1) x 0.1%, where t number of years to maturity. What is the liquidity premium on corporate bonds? O 4.35% 3.85% O 3.81% 4.10% O 4.22% W

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