JD O. 4.36% QUESTION 14 Kern Corporation's 5-year bonds yield 6.60% and 5-year T-bonds yield 3.40%. The real risk-free rate is r* - 2.5%, the default risk premium for Ker's bonds is DRP-1.90% versus zero for T-bonds, the liquidity premium on Kern's bonds is LP-1.3%, and the maturity risk premium for all bonds is found with the formula MRP-(t-1)0,1%, where t = number of years to maturity. What is the inflation premium (IP) on all 5-year bonds? a. 0.38% Ob.0.50% Oc.0.51% O d. 0.54% Oe.0.48% QUESTION 15 Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.30%, based on semiannual compounding. What is the bond's price? a. $1,224.05 b. $948.04 c. $1,200.05 d. $1,500.06 e. $1,164.05 Click Save and Submit to save and submit. Click Save All Answers to see all answers Save All Answers