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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

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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 T-bills are currently earning 30 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds nts BOOK Real risk-free rate -0.25% Default risk premium - 1.051 Liquidity risk premium - 0.70% Maturity risk premium -0.65% a. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30 year bonds? Pin References (For all requirements, round your percentage answers to 2 decimal places (e.g. 32.16)) Inflation premium b Fair interest rate 030 320

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