Question: Moving to another question will save this response. Question 7 of 40 Question 7 2 points Niendorf Corporation's 5 year bonds yield 11.25%, and S-year

Moving to another question will save this response. Question 7 of 40 Question 7 2 points Niendorf Corporation's 5 year bonds yield 11.25%, and S-year T-bonds yield 4.80%. The real risk-free rate is * 2.75%, the inflation premium for 5-year bonds is IP-1.65%, the default risk premium for Niendorf's bonds is DRP - 120% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP - (-1) 0.1%, wheret number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds? a. 3.99% b. 4.36% 6.09% d. 5.25% e. 4.41%

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