The real rate of interest is currently3%; 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%

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

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

c.) Find the nominal rate of interest for each security.