multiple_choice_question29143999 You are considering an investment in 30-year b

multiple_choice_question29143999 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 3.55%. Your broker has determined the following information about economic activity and Moore Corporation
bonds:Real interest rate = 2.75%Default risk premium = 1.05%Liquidity risk premium = 0.50%Maturity risk
premium = 1.85%What is the inflation premium? 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 3.55%. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real interest rate = 2.75%
Default risk premium = 1.05%
Liquidity risk premium = 0.50%
Maturity risk premium = 1.85%
What is the inflation premium?