Use the following interest rate data to answer the next seven questions. 90-day Treasury bills 8.36 percent 180-day Treasury bills 8.48 percent 2-year Treasury notes 9.10 percent 3-year Treasury notes 9.25 percent 90-day Commercial paper 9.15 percent 3-year Corporate bonds (AA) 10.10 percent 3-year Municipal (AA) 7.07 percent Expected 2-year inflation rate 3.50 percent

(d) With reference to the data above, which security below did the market view as having the greatest default risk? a. 90-day Treasury securities b. 180-day Treasury securities c. 2-year Treasury securities d. 90-day Commercial paper

(c) With reference to the data above, what is the expected real rate of return on the 2-year Treasury security? a. 12.6% b. 9.1% c. 5.4% d. 4.2% e. 3.5%

(c) With reference to the data above, what is the default risk premium on commercial paper? a. 5.65% b. 0.95% c. 0.79% d. 0.55% e. 0% THESE ARE THE CORRECT ANSWERS BUT SHOW ME HOW THEY CALCULATED THE ANSWERS.