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please help 2. 6-2 You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street

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2. 6-2 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 1-year T-bills are currently earning 1.25 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate = 0.75% Default risk premium = 1.15% Liquidity risk premium = 0.50% Maturity risk premium = 1.75% a. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30-year bonds? Nuor the next two years the real risk-free rate is expected to be 1.00

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