Kay Corporation's 5-year bonds yield 7.00% and 5-year T-bonds yield 4.40%. The real risk-free rate is r* = 2.5%, the inflation premium for 5-year bonds is IP 1.50%, 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? 1.61% 1.01% 1.40% 1.30% 1.38%