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 earning $0\mathrm{.}30$

percent. Your broker has determined the following information about economic activity and Moore

Corporation bonds:

Real risk$-$free rate

Default risk premium

Liquidity risk premium

Maturity risk premium

$=0\mathrm{.}25\%$

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

$=0\mathrm{.}70\%$

$=0\mathrm{.}65\%$

a$.$ What is the inflation premium?

b$.$ What is the fair interest rate on Moore Corporation $30-$year bonds?

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