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Niendorf Corporation's 5 - year bonds yield 1 1 . 2 5 % , and 5 - year T - bonds yield 4 . 8

Niendorf Corporation's 5-year bonds yield 11.25%, and 5-year T-bonds yield 4.80%. The real risk-free rate is r**=2.75%, the inflation premium for 5-year bonds is IP =1.65%, the default risk premium for Niendorf's bonds is DRP =1.20% 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 Niendorf's bonds?
5.25%
4.36%
6.09%
5.88%
6.30%
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