1. The rates on one-year treasury bills averaged 2.35% in 2020. Assume inflation for the year was 2.10%. What is the real risk-free rate for 2020? What is the name of the theory related to this equation? (4 points) 2. You are an excellent financial advisor and decide to do some research about Reinhardt Corporation, as you have a client that may want to invest in bonds issued by the corporation. The inflation premium is expected to be 1.50% next year, 1.52% in year 2, 1.75% in year 3, and 3.50% in year 4. It is expected to remain constant after year 4. The real risk-free rate is 1.86%. You have determined the following additional information about Reinhardt Corporations bonds: the default risk premium is 3.45%, the liquidity risk premium is 1.72%, and the maturity risk premium is 0.0023 * n, where n is the number of years until maturity. If the bonds mature in 15 years, what is the fair interest rate on these bonds? When should your client invest in these bonds? Explain. (20 points)