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 one-year T-bills are currently earning .50 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:

Real interest rate	=	0.47%
Default risk premium	=	1.05%
Liquidity risk premium	=	0.60%
Maturity risk premium	=	0.85%

a.	What is the inflation premium? (Round your answer to 2 decimal places. (e.g., 32.16))

Inflation premium

%

b.	What is the fair interest rate on Moore Corporation 30-year bonds? (Round your answer to 2 decimal places. (e.g., 32.16))

Fair interest rate

%