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 one-year T-bills are currently earning 3.55 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real interest rate = 2.75 percent, default risk premium = 1.05 percent, liquidity risk premium = 0.50 percent, maturity risk premium = 1.85 percent. What is the fair interest rate on Moore Corporation 30-year bonds?

Group of answer choices

A. 6.15%

B. 6.95%

C. 3.80%

D. 9.70%