Different between Expected Rate of Return and free risk rate

Problem 1: (Excel is not required) Explain the different between Expected Rate of Return and free risk rate (10 points)                 Problem 2: (Excel is not required) PeterCo has the following Government Bonds: a-Complete the following table (Excel is not required, 10 points) PeterCo Bonds % YTM, maturity=10Years S&P Rating Order from most secure (1) to least (5) Mark with “x” the Junk Bonds A 3,1 BBB B 2,3 A C 4,6 BB D 17.9 CC E 12,3 CCC b) Explain this: “As interest rates increase (decrease), the value of the bond decreases (increases)”, using Financials arguments and represent this relationship graphically (10 points):