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You are considering an investment in 20-year bonds issued by Powercat Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year

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You are considering an investment in 20-year bonds issued by Powercat Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 0.30 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? (For all requirements, round your percentage answers to 2 decimal places. (e.9.32.16) )

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