Kay Corporation's 5 -year bonds yield 5.20% and 5 -year T-bonds yield 3.50%. The real risk-free rate is r=1.90%, the inflation premium for 5 -year bonds is IP=1.20%, the default risk premium for Kay's bonds is DRP =1.30% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP =(t1)0.1%, where t= number of years to maturity. What is the liquidity premium (LP) on Kay's bonds? a. 0.40% b. 0.80% c. 0.90% d. 1.30% e. 1.70%