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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

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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 year T-bills are currently earning 6.30 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds Hal risk free rate = 0.25% Default risk peenius 1.05 Liquidity risk premium Maturity risk premium -0.655 a. What is the inflation premium? b. What is the fall interest rate on Moore Corporation 30 year bonds? (For all requirements, round your percentage answers to 2 decimal places. (0.9.32.16)) -0.79% bon premium Fair interest rate

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