Please show work:

1. You are given the following data r* -real risk-free rate 4% Constant inflation premium (IP) Maturity risk premium (MRP) Default risk premium for AAA bonds (DRP) 3% Liquidity premium for long-term T-bonds (LP) 2% 7% 1% Assume that a highly liquid market does not exist for long-term T-bonds, and the expected rate of inflation is a constant. Given these conditions, the rate on long-term Treasury bonds is a, 23% b. 11% c. 14% d. 19% 2. Assume that you are considering the purchase of a 20-year bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments If you require an 8.4% nominal yield to maturity on this investment, what is the price you should be willing to pay for the bond? a. $1,105.69 b. $1,133.34 c. $1,161.67 d. $1,190.71 3. Adams Enterprises' bonds currently sell for $1,120. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity? a. 6.15% b. 6.47% c. 6.81% d. 7.17%