The two$-$year interest rate is $11\mathrm{.}2\%,$ and the expected annual inflation rate is $5\mathrm{.}6\%.$

a$.$ What is the expected real interest rate?

b$-1.$ If the expected rate of inflation suddenly rises to $7\mathrm{.}6\%,$ what does Fisher$$s theory say about how the real interest rate will change?

b$-2.$ If the expected rate of inflation suddenly rises to $7\mathrm{.}6\%,$ what will be the new nominal rate?