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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 nuteis p*=2.75%, the inflation premium for syma benda is IP -

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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 nuteis p*=2.75%, the inflation premium for syma benda is IP - 1.65%, the default risk premium for Niendorf's bonds is DRP-1.20% verses wero for T-bonds, and the maturity risk premium for all bonde la found with the formula MRP - (1 - 1) * 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf' bonda? ola. 1.42W b.2.17 c. 1.75* O d. 2.104 O e 1.56% 0 Icon Rey 7020

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