Question: please answer a and b. answer is NOT -2.95 which someone put as an answer on chegg You are considering an investment in 30-year bonds

please answer a and b. answer is NOT -2.95 which someone put as an answer on chegg

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 0.40 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: a. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30-year bonds? (For all requirements, round your percentage answers to 2 decimal places. (e.g., 32.16))

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