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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 one-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 one-year T-bills are currently earning 0.30 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: What is the inflation premium? (Round your answer to 2 decimal places, (e.g., 32.16)) What is the fair interest rate on Moore Corporation 30-year bonds? (Round your answer to 2 decimal places, (e.g., 32.16))
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