Niendorf Corporation's 5-Year Bonds Yield 7 $\times$ 0)1%,where T = Number of Years to Maturity

Niendorf Corporation's 5-year bonds yield 7.75%,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) $\times$
0) 1%,where t = number of years to maturity.What is the liquidity premium (LP) on Niendorf's bonds?

A) 1.42%
B) 2.10%
C) 2.17%
D) 1.75%
E) 1.56%