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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 Journalreports that 1-year

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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 Journalreports that 1-year T-bills are currently earning 0.30 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate = 0.23% Default risk premium = 1.65% Liquidity risk = 0.5% premium Maturity risk premium = 0.75% o. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30 year bonds? (For all requirements, round your answers to 2 decimal places. (e.g., 32.16)) a Inflation premium b. Fair interest rate

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