Nbspniendorf corporations 5-year bonds inflation premium


 Niendorf Corporation's 5-year bonds inflation premium for 5-year bonds yield 9.50%, and 5-year T-bonds yield 4.80%. The real risk-free rate is r = 2.75%, the inflation premium for 5 years is IP = 1.65%, the default risk premium for Niendorf's bonds Is DRP = 1.20% versus zero for T- bond, and the maturity 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? 

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Financial Management: Nbspniendorf corporations 5-year bonds inflation premium
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