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Tom and Sue s Flowers, Incorporated s 1 5 - year bonds are currently yielding a return of 8 . 9 0 percent. The expected
Tom and Sues Flowers, Incorporateds year bonds are currently yielding a return of percent. The expected inflation premium is percent annually and the real riskfree rate is expected to be percent annually over the next years. The default risk premium on Tom and Sues Flowers bonds is percent. The maturity risk premium is percent on year securities and increases by percent for each additional year to maturity. Calculate the liquidity risk premium on Tom and Sues Flowers, Incorporateds year bonds.
Note: Round your percentage answer to decimal places ie should be entered as
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