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Niendorf Corporation's 5-year bonds yield 7.75%, and 5 -year T-bonds yield 4.80%. The real risk-free rate is r= 2.75%, the inflation premium for 5 -year

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Niendorf Corporation's 5-year bonds yield 7.75%, 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? 1.42% 2.10% 2.17% 1.75% 1.56%

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