Kay Corporation's 5-year bonds yield 6.00% and 5-year T-bonds yield 3.60%. The real risk-free rate is r = 1.80%, the inflation premium for 5-year bonds is IP- 1.40%, 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 (t-1) x 0.1%, where t number of years to maturity. What is the liquidity premium (LP) on Kay's bonds? Oa. 2.40% b. 1.50% c. 1.10% Od. 1.40% e. 2.00% Icon Key