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OOOOO 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
OOOOO 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 in IP - 1.65%, the defuult 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%, wheret - number of years to maturity. What is the liquidity premium (LP) on Niendorfs bonds? a. 1.56 5.2.17 1.75 d. 142 4.210
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