Assume that the real risk free rate is 2%, and investors expect inflation to be 5% year 1, 6% the year 2, and 8% per year thereafter. Assume the MRP is zero for Year 1 and increases by 0.1% each year . Find interest rate in 20 years.

Assume that the real risk free rate is 2%, and investors expect inflation to be 5% year 1,6% the year 2, and 8% per year thereafter. Assume the MRP is zero for Year 1 and increases by 0.1% each year. Find interest rate in 20 years. 12.15% 11.65% 10.08% 8.96% 12.65%