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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

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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 T-bills are currently earning 3.55 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real interest rate - 2.75 percent, default risk premium - 1.05 percent, liquidity risk premium = 0.50 percent, maturity risk premium = 1.85 percent. What is the fair interest rate on Moore Corporation 30-year bonds? 9.70% O 3.80% 6.15% 6.95%

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