Determinants of Interest Rate for Individual SecuritiesYou are considering an investment in 30-year bonds issued by a corporation. The bonds have no special covenants.The Wall Street Journalreports that 1-year T-bills are currently earning 5.30 percent. Your broker has determined the following information about economic activity and the corporation bonds:

Real interest rate = 4.15%

Default risk premium = 2.55%

Liquidity risk premium = .40%

Maturity risk premium = 2.30%

What is the inflation premium? What is the fair interest rate on the corporation's 30-year bonds?