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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 1.50 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate =0.50% Defaute itsk premium =1,40% Liquidity risk premium =1.00% Maturity risk premitum =2.00% a. What is the inflation premium? (Round your answer to 2 decimal places.) a. What is the inflation premium? (Round your answer to 2 decimal places.) b. What is the fair interest rate on Moore Corporation 30-year bonds? (Round your answer to 2 decimal places.)

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