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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

image text in transcribed 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 =(t1)0.1%, where t= number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds

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