Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE

22-The real interest rate is estimated as 3% and inflation is forecasted as 3%, 4% and 5% for each of the coming 3 years. Calculate the expected yield on a 3-year Treasury note, assuming that its maturity risk premium is negligible.

A)8%

B)6%

C)7%

D)9%

24-The real interest rate is estimated as 1% and inflation is forecasted as 1.5%, 2% and 2.5% for each of the coming 3 years. Calculate the expected yield on a 3-year Treasury note, assuming that its maturity risk premium is negligible.

A)4%

B)3%

C)2%

D)-2%

28-As Morgan-ChaseMorgan Stanleys representative to the Treasury bill and bond auction, you and your staff arrive at the following forecasts: Real interest rate (k*) = 1.00% Expected inflation in years 1 through 3 (I₁ to I₃) = 0.72% Expected inflation in years 4 through 6 (I₄ to I₆) = 1.29%. MRP(n) = 0% so the assumptions of the Expectation Theory hold. Given the data above, calculate Morgan Stanleys expected rate of return on a 1-year T-bill in the 6 year (time t + 6-1).