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Problem 6-2 Determinants of Interest Rates for Individual Securities (LG6-6) You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have

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Problem 6-2 Determinants of Interest Rates for Individual Securities (LG6-6) You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special coveriants The Wall Street Journal reports that tyear T.bals are currently earning 150 percent Your broker has determined the following information about economic activiy and Moore Corporation bonds: Peial nik free rate =050% Detaut risk premium =140% Uiquaity risk premam =100% Maturky nsk premium =2005 0. What is the inflation pretrum? (Round your answer to 2 decimal ploces) b. What is the tair interest rate on Moore Corporation J0year bonds? (Round your answer to 2 decimol plocet)

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