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D Question 12 1 pts Niendorf Corporation's 5-year bonds yield 11.25%, and 5-year T-bonds yield 4.80%. The real risk- free rate is r' = 2.75%,

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D Question 12 1 pts Niendorf Corporation's 5-year bonds yield 11.25%, and 5-year T-bonds yield 4.80%. 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 Niendorf'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) x 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds? 4.36% O 5.25% 06.30% 6.09% 5.88%

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