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Please answer quickly for a like 34 Keys Corporation's 5-year bonds yield 7.8%, and 5-year T-bonds yield 5.9%. The real risk-free rate is r* =
Please answer quickly for a like
Keys Corporation's 5-year bonds yield 7.8%, and 5-year T-bonds yield 5.9%. The real risk-free rate is r* = 2.2%, the inflation premium for 5 years bonds is IP = 3.3%, the default risk premium for Keys' bonds is DRP = 0.48% 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 Keys' bonds? O 1.32% 1.22% O 1.52% O 1.12% O 1.42% 34
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