Squire Inc.$\text{'}$s $5-$year bonds yield $11\mathrm{.}75\%,$ and $5-$year T$-$bonds yield $4\mathrm{.}80\%.$ The real risk$-$free rate is $r^{**}=2\mathrm{.}75\%,$ the inflation premium for $5-$year bonds is IP $=1\mathrm{.}65\%,$ the default risk premium for Squire's bonds is $DRP=1\mathrm{.}20\%$ versus zero for T$-$bonds, and the maturity risk premium for all bonds is found with the formula $MRP=(t-1)0\mathrm{.}1\%,$ where $t=$ number of years to maturity. What is the liquidity premium $($LP$)$ on Squire's bonds?

Select the correct answer.

a$.5\mathrm{.}49\%$

b$.5\mathrm{.}23\%$

c$.5\mathrm{.}62\%$

d$.5\mathrm{.}75\%$

e$.5\mathrm{.}36\%$