A palindrome is a word that is spelled the same way backwards as it is forwards. The answer here is:
repaper
The palindrome is repaper.
repaper
One possible palindrome for "old" is "dol", and for "faded" is "dedaf". So, a palindrome for "old and faded" could be "dol dedaf".
repaper
repaper
repaper
repaper
repaper
REPAPER
repaper
repaper
Repaper