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You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no...

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 1.55 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:

Real risk-free rate = 0.45%
Default risk premium = 1.45%
Liquidity risk premium = 1.10%
Maturity risk premium = 2.05%

What is the inflation Premium? (Round your answer to 2 decimal places.)

Expected IP______%

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

Fair interest rate_____%

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