[2]. You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills page 55are currently earning 3.25 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:]

Real risk-free rate= 2.25%

Default risk premium= 1.15%

Liquidity risk premium = 0.50%

Maturity risk premium=1.75%

a.What is the inflation premium?

b.What is the fair interest rate on Moore Corporation 30-year bonds?