Question: A Moving to another question will save this response. Question 9 4 points Save Answer Niendorf Corporation's 5-year bonds yield 11.25%, and 5-year T- bonds

A Moving to another question will save this response. Question 9 4 points Save Answer Niendorf Corporation's 5-year bonds yield 11.25%, and 5-year T- bonds yield 4.80%. The real risk-free rate is r* = 2.75%, the inflation premium for 5-year bonds is IP = 1.65%, the default risk premium for Niendorf's bonds is DRP= 1.20% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t-1) * 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds? a. 4.41% Ob.6.09% c. 4.36% Od. 3.99% e. 5.25% >> Question 9 of 28 > A Moving to another question will save this response

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