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Niendorf Corporation's 5-year bonds yield 6.75%, and 5-year T-bonds yield 465% The real risk-free rate is r* - 2.75%, the inflation premium for 5-year bonds

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Niendorf Corporation's 5-year bonds yield 6.75%, and 5-year T-bonds yield 465% The real risk-free rate is r* - 2.75%, the inflation premium for 5-year bonds is P-1.40%, 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 = (-3) x 0.25%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds? O 0.90% 2.10% O 1.50% O 0.60% O 0.30% Question 15 Coker Corporation's 5-year bonds yield 8.85%, and 5-year T-bonds yield 689%. The real risk-free rate is re- 4.35%, the default risk premium for Crockett's bonds is DRP -0.75% versus zero for T-bonds, the liquidity premium on Crockett's bonds is LP-1.25%, and the maturity risk premium for all bonds is found with the formula MRP=(t-2) x 0.30%, where t= number of years to maturity. What is the inflation premium (IP) on 5-year bonds? O 1.00% 2.00% O 1.50% O 1.60% O 1.30%

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