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: Unit 9 Lab Assignment Assignment Score: 60.0 Save Submit Assignment for Gradin C.04.074.Algo Question 8 of 15 Check My Work (1 remaining) lire Inc.'s

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: Unit 9 Lab Assignment Assignment Score: 60.0 Save Submit Assignment for Gradin C.04.074.Algo Question 8 of 15 Check My Work (1 remaining) lire Inc.'s 5-year bonds yield 12.25%, and 5-year T-bonds yield 4.80%. The real risk-free rate is r* = 2.75 inflation premium for 5-year bonds is IP = 1.65%, the default risk premium for Squire's bonds is DRP 0% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRI 1) x 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Squire's bond ect the correct answer. a. 6.57% b. 6.25% C. 6.41% d. 6.73% e. 6.09%

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