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 1.90 percent. your broker has determined the following information about economic activity and moore corporation bonds: real interest rate = 0.85%default risk premium = 1.80%liquidity risk premium = 1.05%maturity risk premium = 2.40%a. what is the inflation premium? b. what is the fair interest rate on moore corporation 30-year bonds?
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