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D Question 16 1pts Niendorf Corporation's 5-year bonds yield 7.75%, and 5-year T-bonds yield 4.80%. The real risk-free rate is r* = 2.75%, the inflation

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D Question 16 1pts Niendorf Corporation's 5-year bonds yield 7.75%, 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 Niendorfs bonds? 1.42% o 2-10% 0 2.17% 1.75% 1.56%

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