Question: This is First Engagement Activity which covers Chapter 2. 1. Collect any country's Consumer Price Index (CPI) for 2 consecutive years and calculate its inflation.

This is First Engagement Activity which covers Chapter 2. 1. Collect any country's Consumer Price Index (CPI) for 2 consecutive years and calculate its inflation. Hints: Data may be collected from World bank database. (2 Marks). 2. (i) Assume any Interest rate for 2 different securities and a treasury security rate with similar feature and Calculate Default Risk. (2) Marks) (ii) How do you see the relationship between interest rate and default risk? (1 Mark)

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