problem: You are given the following information:
k* = real risk-free rate = 4%
Constant inflation premium = 7%
Maturity risk premium = 1%
Default risk premium for AAA bonds = 3 percent
Liquidity premium for long-term T-bonds = 2 percent
Suppose that a highly liquid market does not exist for long term T-bonds, & the expected rate of inflation is a constant. Given these situations, the nominal risk-free rate for T-bills is ___, & the rate on long-term Treasury bonds is ___.