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Question 14 1 pts Niendorf Corporation's 5-year bonds yield 6.75%, and 5-year T-bonds yield 4.65%. The real risk- free rate is r* = 2.75%, the

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Question 14 1 pts Niendorf Corporation's 5-year bonds yield 6.75%, and 5-year T-bonds yield 4.65%. The real risk- free rate is r* = 2.75%, the inflation premium for 5-year bonds is IP = 1.40%, 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 - 3) x 0.25%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds? 0.30% 0.90% 1.50% O 0.60% 2.10% Question 13 1 pts A 25-year, $1,000 par value bond has a 5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 5 years from now? (Hint: If your solution is not an integer, round to the nearest whole number.) $880 $884 $888 $891 $882

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