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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 1-year

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 3.25 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 = 2.25% = 1.15% = 0.50% = 1.75% a. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30-year bonds? (For all requireme round your percentage answers to 2 decimal places. (e.g., 32.16)) a. Inflation premium % b. Fair interest rate

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