You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants.The Wall Street Journalreports that one-year T-bills are currently earning 0.40 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:

Real risk-free rate	=	0.35%
Default risk premium	=	1.15%
Liquidity risk premium	=	0.70%
Maturity risk premium	=	0.95%

a.	What is the inflation premium?(Round your answer to 2 decimal places. (e.g., 32.16))

Inflation premium

%

b.	What is the fair interest rate on Moore Corporation 30-year bonds?(Round your answer to 2 decimal places. (e.g., 32.16))

Fair interest rate

%