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You are considering an investment in $20-$year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that $1-$year T$-$bills are currently earning $0\mathrm{.}30$ percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:

Real risk$-$free rate Default risk premium Liquidity risk premium Maturity risk premium

$=0\mathrm{.}21\%$

$=1\mathrm{.}15\%$

$=0\mathrm{.}80\%$

$=0\mathrm{.}75\%$

a$.$ What is the inflation premium?

b$.$ What is the fair interest rate on Moore Corporation $20-$year bonds?