You are considering an unvestment in 30-year bonds issued by moore corporation. The bonds have no special covenants. The wall street journal reports that 1 year T-biils are cuurently earning 0.40 percent. Your broker has determined the following information about economic activity and moore corporation bonds:

real risk free rate = 0.32

default risk premium = 1.05

liquidity risk premium = 0.70%

maturity risk premium = 0.65%

a.inflation premium ______ %

b.fair interest rate _________%