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QUESTION 2 QUESTION 2 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

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QUESTION 2 QUESTION 2 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 = 1.65%, 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 la formula MRP = (t-1) * 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds

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