Top Posters
Since Sunday
p
4
h
4
c
4
d
3
3
c
3
t
3
u
3
A
3
B
3
j
3
s
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
vikingblood vikingblood
wrote...
Go to Answer
Posts: 133
Rep: 0 0
A year ago
Niendorf Corporation’s 5-year bonds yield 7.15%, and 5-year T-bonds yield 5%. The real risk-free rate is r* = 2.85%, the inflation premium for 5-year bonds is IP = 1.75%, the default risk premium for Niendorf’s bonds is DRP = 1.3% 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?


▸

0.85%



▸

0.95%



▸

1.00%



▸

1.20%

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
Read 51 times
1 Reply
Replies
Answer verified by a subject expert
wellsarwellsar
wrote...
#1
Posts: 135
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

vikingblood Author
wrote...

A year ago
This helped my grade so much Perfect
choih94
wrote...

Yesterday
This site is awesome
Natalie Price
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1091 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 128
  
 932
  
 479
Your Opinion
What's your favorite coffee beverage?
Votes: 302
Previous poll results: Should Ph.D.'s be addressed as doctors?