Please do it with proper working and understanding.

33. Abbas and Qasim predicted the inflation to go up to 10.7% this year and incorporating the international oil prices in the model they calculated that interest rate in following year may show a further increase of 40 bips and then after a decline of 60bips in following year it will remain at 8.5%. Assuming the real risk-free rate at 2.5% and that MRP rise from zero on T-bills by 0.3% each year up to limit of 2% on 5 year or Longer PIBs. Calculate the return on a 10-year PIB. 33. Abbas and Qasim predicted the inflation to go up to 10.7% this year and incorporating the international oil prices in the model they calculated that interest rate in following year may show a further increase of 40 bips and then after a decline of 60bips in following year it will remain at 8.5%. Assuming the real risk-free rate at 2.5% and that MRP rise from zero on T-bills by 0.3% each year up to limit of 2% on 5 year or Longer PIBs. Calculate the return on a 10-year PIB