1) REAL RISK-FREE RATEYou read in The Wall Street Journal that 30-day T-bills are currently yielding 5.8%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:Inflation premium3:25%Liquidity premium0:6%Maturity risk premium1:85%Default risk premium2:15%On the basis of these data, what is the real risk-free rate of return?

2) EXPECTED INTEREST RATEThe real risk-free rate is 2.25%. Inflation is expected to be 2.5%this year and 4.25% during the next 2 years. Assume that the maturity risk premium is zero.What is the yield on 2-year Treasury securities? What is the yield on a 3-year Treasury

Using - Required rate of return= (r*+IP)+ default risk premium+ liquidity risk premium+ maturity risk premium

Really need help with a step-by-step of solving the equation, thank you!