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Niendorf Corporation's 5-year bonds yield 8.00%, and 5-year T-bonds yield 5.80%. 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 8.00%, and 5-year T-bonds yield 5.80%. The real risk-free rate is r* = 2.75%, the inflation premium for 5-year bonds is IP = 1.56%, 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 = (t - 1) * 0.1%, where t= number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds? TT T Arial 3 (12pt) T.5 - E Words:0 Path:p Must be solved using excel function, not algebraic

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