Problem 1: Fisher Equation Determine the real rate of interest for the following scenarios: A - Nominal interest is 7% and expected inflation is 4% B - Nominal interest is 8% and expected inflation is 7% C - Nominal interest is 5% and expected inflation is 6% Fisher Equation & Present Value D - Suppose the rate of inflation over the next 3 years is expected to be 16% (total, not per year). If the real interest rate on a bond is 2% per year, what is its present value when issued? E - Suppose the present value of a 5-year bond with a face value of $1000 has a present value of $746. If the real rate of interest is 3%, what is the average rate of inflation over those five years (total inflation divided by 5)?