please answer the question

Problem 5-23 Determinants of Interest Rates Suppose you and most other investors expect the inflation rate to be 7% next year, to fall to 5% during the following year, and then to remain at a rate of 3% thereafter. Assume that the real risk-free rate, r*, will remain at 2% and that maturity risk premiums on Treasury securities rise from zero on very short-term securities (those that mature in a few days) to a level of 0.2 percentage points for 1-year securities. Furthermore, maturity risk premiums increase 0.2 percentage points for each year to maturity, up to a limit of 1.0 percentage point on 5-year or longer-term T-notes and T-bonds. a. Calculate the interest rate on 1-year Treasury securities. Round your answer to two decimal places. % Calculate the interest rate on 2-year Treasury securities. Round your answer to two decimal places. % Calculate the interest rate on 3-year Treasury securities. Round your answer to two decimal places. % Calculate the interest rate on 4-year Treasury securities. Round your answer to two decimal places. % Calculate the interest rate on 5-year Treasury securities. Round your answer to two decimal places. % Calculate the interest rate on 10-year Treasury securities. Round your answer to two decimal places. % Calculate the interest rate on 20-year Treasury securities. Round your answer to two decimal places. % b. Select the correct graph for approximate yield curve of Long Island Lighting Company (LILCO), a risky nuclear utility & yield curve based on the results above in Requirement a. Suppose ExxonMobil's bonds, rated AAA, have the same maturities as the Treasury bonds. As an approximation, plot an ExxonMobil yield curve on the same graph with the Treasury bond yield curve. (Hint: Think about the default risk premium on ExxonMobil's long-term versus its short-term bonds.) Select the correct graph. A Treasury 19 Interest Rate % 181 17 16+ 15 14 131 121 11 Exxon 10 9 LILCO 8 71 Exon B Interest Rate % 19 % 181 17 16 15 14 Tilco 13 121 11 Exxon 10 Treasury 8+ Years to Maturity 7 f. -4-25 1 2 4 6 8 10121416182022 24 19 Interest Rate % 18+ 17 16 15 14 13 121 11 LILCO 10 9 Treasury 85 Years to Maturity 75 ---- -4-251 2 4 6 8 10121416182022 24 Years to Maturity -4 -251 2 4 6 8 10121416182022 24 D Interest Rate % 19 18 17 16 15 14 Lilco 131 121 11 10 9 Excxon 81 71 Treasury Years to Maturity -4 -251 2 4 6 8 10121416182022 24 The correct graph is -Select