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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 covenants. The Wall Street Journal reports that 1 -year T-bills are currently eatning 2.00 percent. Your broker has defermined the following information about economic activity and Moore Corporation bonds: Real risk-free rate =0.60% Default risk premium =1.90% Liquidity risk premium =1.40% Maturity risk premium -2500 o. What is the inflation premium? (Round your answer to 2 decimol places.)

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