3. Answer the following questions: A particular security's equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.5 percent. The security's liq- uidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. Calculate the security's default risk premium? B You are considering an investment in 30-year bonds issued by Moore Corporation. The Wall Street Journal reports that one-year T-bills are 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% 1. What is the inflation premium? 2. What is the fair interest rate on Moore Corporation 30-year bonds