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Keys Corporation's 5-year bonds yield 5.1%, and 5-year T-bonds yield 3.7%. The real risk-free rate is r*= 1.5%, the inflation premium for 5 years bonds

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Keys Corporation's 5-year bonds yield 5.1%, and 5-year T-bonds yield 3.7%. The real risk-free rate is r*= 1.5%, the inflation premium for 5 years bonds is IP 1.8% , the default risk premium for Keys' bonds is DRP = 0.33% versus zero for T-bonds, 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 liquidity premium (LP) on Keys' bonds? O 1.17% 1.07% O 1.27% O 1.47% 1.37%

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