Want to find the nominal rate of interest.

inflation premium 1.33

Treasury bill 2.18 return

default risk, maturity risk, liquid risk, etc. 9.66

Calculate the nominal rate of interest and have answer to two decimals.

nominal rate = named rate = contract rate other risk premiums include default risk, maturity risk, liquidity risk, etc. risk-free rate = US Treasury bill, Tbill rate

nominal rate = real rate + inflation premium + other risk premiums real rate + inflation premium = risk free rate.

Therefore: nominal rate = risk free rate + other risk premiums

we are asked for the nominal rate of interest = risk-free rate + other risk premiums. The inflation premium is included in the risk-free rate

Please write out step by step where each percentage goes with the formula. Thank you.