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Niendorf Corporation's 5-year bonds yield 9.15%, and 5 -year T-bonds yield 5.65%. The real risk-free rate is r =3.35%, the inflation premium for 5 -year

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Niendorf Corporation's 5-year bonds yield 9.15%, and 5 -year T-bonds yield 5.65%. The real risk-free rate is r" =3.35%, the inflation premium for 5 -year bonds is IP=1.90%, the default risk premium for Niendorf' 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 (I.P) on Niendorf's bonds? 3. 3.50\% b. 2.70% c. 2.00\% d. 230% e. 3.10%

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