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Bond Maturity Liquidity Default Risk YTM A 2 High Low 3.5% B 2 High High 4.5% C 8 High Low 5.5% D 8 Low High

Bond
Maturity
Liquidity
Default Risk
YTM
A
2
High
Low
3.5%
B
2
High
High
4.5%
C
8
High
Low
5.5%
D
8
Low
High
7.0%

Based on the table above, what is the maturity risk premium?

1%

2%

0.5%

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