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The maturity risk premium ( MRP ) is determined from the formula: 0 . 1 ( t - 1 ) % , where t is

The maturity risk premium (MRP) is determined from the formula: 0.1(t-1)%, where t is the security's maturity. The liquidity premium (LP) on all Nationial Transmissions Corp.s bonds is 1.05%. The following table shows the current relationship between bond ratings and default risk premiums (DRP):
\table[[Rating,Default Risk Premium],[U.S. Treasury,-],[AMA,0.60%
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