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Smith Inc's 5-year bonds yield 7.00% and 5-year T-bonds yield 5.80%. The real risk-free rate is r* = 3.5%, the default risk premium for the

Smith Inc's 5-year bonds yield 7.00% and 5-year T-bonds yield 5.80%. The real risk-free rate is r* = 3.5%, the default risk premium for the bonds is DRP = 0.90%, the liquidity premium on Flagstaff's bonds is LP = 0.30% versus zero on T-bonds, and the inflation premium (IP) is 1.5%. What is the maturity risk premium (MRP) on all 5-year bonds?

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