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 $0\mathrm{.}40$ percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:

Real risk$-$free rate

Default risk premium

$=0\mathrm{.}37\%$

$=1\mathrm{.}05\%$

$=0\mathrm{.}60\%$

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

Liquidity risk premium

Maturity risk premium

a$.$ What is the inflation premium?

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

$($For all requirements, round your percentage answers to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

$\backslash$table$[[,,,],[$a$,$Inflation premium,,$\%$