ou 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 are currently earning $1\mathrm{.}35$ percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:

Real risk$-$free rate $=0\mathrm{.}65\%$

Default risk premium $=1\mathrm{.}25\%$

Liquidity risk premium $=0\mathrm{.}70\%$

Maturity risk premium $=1\mathrm{.}85\%$

a$)$ What is the inflation premium

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