4. Inflation is expected to be 5% next year and a steady 7% each year thereafter. Maturity risk premiums are zero for one year debt but have an increasing value for longer debt. One- year government debt yields 9% whereas two-year debt yields 11%. a What is the real risk-free rate and the maturity risk premium for two-year debt? b. Forecast the nominal yield on one- and two-year government debt issued at the beginning of the second year (10 POINTS)