Please leave detailed steps so i can follow along.

on 18 assume all bonds are risk free.

5-18 Suppose today is January 2, 2022, and investors expect the annual inflation rates in 2022 through 2024 to be: To yield a real risk-free rate, r, equal to 2 percent, what would the average nominal rate be on a (a) one-year bond, (b) two-year bond, and (c) three-year bond? 5-7 Yesterday Sandi sold 1,000 shares of stock that she owned for $45 per share. When she purchased the stock two years ago, Sandi paid $50 per share. Every three months during the time she held the stock, Sandi recoived a quarterly dividend equal to $0.50 per share. Eight dividends were received during the two years she held the stock. (a) What return (yield) did Sandi earn during the two years she held the stock? (b) If the price of the stock was $45 per share one year ago, what return did Sandi earn in each year she held the stock? 5-11 The interest rate on one-year Treasury bonds is 0.4 percent, the rate on twoyear T-bonds is 0.8 percent, and the rate on three-year T-bonds is 1.1 percent. Using the expectations theory, compute the expected one-year interest rates in (a) the second year (Year 2 only) and (b) the third year (Year 3 only). (LO 5-3) 5-20 Suppose today is January 2,2022 , and investors expect the annual nominal riskfree interest rates in 2024 and 2025 to be: Currently a two-year Treasury bond that matures on December 31, 2023 has an interest rate equal to 1.4 percent. What is the yield to maturity for Treasury bonds that mature at the end of (a) 2024 (a three-year bond) and (b) 2025 (a four-year bond)? Assume the bonds have no risks. (LO 5-3)