Please show formulas

P68 Risk-free rate and risk premiums The real rate of interest is currently 3%; the inflation expectation and risk premiums for a number of securities follow.

Inflation expectation
Security	Premium	Risk premium
A	6%	3%
B	9	2
C	8	2
D	5	4
E	11	1

Find the risk-free rate of interest, R_F, that is applicable to each security.

Although not noted, what factor must be the cause of the differing risk-free rates found in part a?

Find the nominal rate of interest for each security.

Problem P6-8
A.					C.
Security	Inflation Expectation Premium	Real Rate of Interest	Risk Premium	Risk-Free Rate	Nominal Rate of Interest
A	6%	3%	3%
B	9%	3%	2%
C	8%	3%	2%
D	5%	3%	4%
E	11%	3%	1%