2. Isabel purchases a $1000 face value one-year Treasury bill for $934.58, and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 9%. If Isabel decides to sell her Treasury bill to another investor the day after she purchased it, she will

A. receive a gain of $28.04

B. Suffer a loss of $17.15

C. Suffer a loss of $18.69

D. Receive a gain of $7.76

The answer for this is B.

3. Suppose you borrow $5000 at an interest rate of 8%. If the expected real interest rate is 3%, then the rate of inflation over the upcoming year that would be most beneficial to you would be

a) greater than 5%

b) equal to 5%

c) greater than 0% but less than 5%

d) 0%

The answer for this is A, I do not know how.

Could you please explain how you got that number