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please show work 2. The nominal interest rate on a ten-year bond is 10%. The expected average annual inflation rate is 3%, while additional risks

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2. The nominal interest rate on a ten-year bond is 10%. The expected average annual inflation rate is 3%, while additional risks account for a premium of 5% (default risk, maturity risk and liquidity risk). (5 pts) Write the equation of nominal interest rate (in general form) (5 pts) What is the implied real risk-free rate of return? 3. 10 pts) Upstate Bank is offering long-term certificates of deposit (with a face value of $100,000) for $72,000 and will receive the $100,000 in ten years. What annual nominal interest rate is the bank paying on these CDs

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