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 $3\mathrm{.}90$ percent. Your broker has determined the following information about

economic activity and Moore Corporation bonds:

Real risk$-$free rate $=2\mathrm{.}50\%$

Default risk premium $=1\mathrm{.}25\%$

Liquidity risk premium $==0\mathrm{.}60\%$

Maturity risk premium $==0\mathrm{.}65\%$

a$.$ What is the inflation premium?

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

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