part a. Suppose the real rate is 9.5 percent and the inflation rate is 1.2 percent. What rate would you expect to see on a Treasury bill?

part b. Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 12 years to maturity. if interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Sam?