You are considesing an investment in $30-$year bonds issued by Moore Corporation. The bonds have no special covenants, The Wall Street Journal seports that lyear T$-$bills are currently carning $1\mathrm{.}50$ percent Your broker has determined the following information about econorvic activity and Moore Corporation bonds:

$10$

Real risk$-$free rate $=0\mathrm{.}50x$

Defauts nisk premium $=140\%$

stiplet

Liquidity risk premitum $=100\%$

Maturty rask premium $=2\mathrm{.}005$

Nene

a$.$ What is the intlation precrumri?

fortankes

b$.$ What is the fair interest rate on Moore Corporation $30$ year bonds?

Note: Round your percentage answers to $2$ decimal places $($he$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34).$

$\backslash$table$[[$Experted inlation prenwum,$4],[$For incerest rate,$3]]$