Niendorf Corporation's 5 year bonds yield 6.76% and 5-year T -bonds yield 4.80% The real-risk-+free rate is = 2.75 % the inflation premium for 5 year bonds is Ip = 1.65% the default risk premium for inventor'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-amber of years to maturity what is the liquidity premium (LP) on Niendorf's bonds? 0.49% 0.55% 0.61% 0.67% Suppose the interest rate on 1 year T-bond is 5.0% and that on a 2-year T-bond is 7.0% Assuming the pure expectations theory is correct what is the market's forecast for --year rates 1-year from now? 7.36% 7.75% 8.16% 8.59% 9.04% Moody Corporation's bonds have a 1--year maturity a 6.25% semiannual coupon and a par value of $1.000 the gong interest rate (rd) is 4.75% based on semiannual compounding what is the bond's price? 1, 063.09 1, 090.35 1, 118.31 1, 146.27 1, 174.93 A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? The bond's coupon rate exceeds its current yield. The bond's current yield exceeds its yield to maturity. The bond's yield to maturity is greater than its coupon rate. The bond's current yield is equal to its coupon rate. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850. This is the information for the problems 10, 11 and 12. Dyl Inc.'s bonds currently sell for $900 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1, 020. What is their yield to maturity (YTM)? 7.78% 6.09% 5.39% 6.71% 7.64%