1. The risk free rate of interest is 2.0%. Inflation is expected to be 2.0% this year, 2.5% next year and 3% in each of the following years. Assume the liquidity premium is fixed at 0.5%; maturity risk premium is calculated to be .1% x (t-1); and default risk premium is fixed at 1.5% for years 1-5 and 2% for years 6-20. Calculate the rate for the following:
   1. A 9 year bond?
   2. A 2 year bond?