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You are considering an investment in 3 0 - year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal

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 1.50 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:
Real risk-free rate =0.50%
Default risk premium =1.40%
Liquidity risk premium =1.00%
Maturity risk premium =2.00%
What is the inflation premium? (Round your answer to 2 decimal places.)
What is the fair interest rate on Moore Corporation 30-year bonds? (Round your answer to 2 decimal places.)

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