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 $3\mathrm{.}50$ percent. Your broker has determined the following information about

economic activity and Moore Corporation bonds:

a$.$ What is the inflation premium?

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

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