To solve the problem, we use the Nominal Interest Rate formula:

$\text{Nominal Interest Rate} = \text{Risk-Free Rate} + \text{Inflation Rate} + \text{Risk Premium}$

Given:

• Risk-Free Rate = 4.19%
• Expected Inflation = 2.98%
• Risk Premium = 4.02%

Calculation:

$\text{Nominal Interest Rate} = 4.19 + 2.98 + 4.02$

$\text{Nominal Interest Rate} = 11.19\%$

Final Answer:

The nominal interest rate is 11.19%.

Let me know if you have questions or want further clarifications!
Here are five related questions to expand on this concept:

1. What is the difference between nominal and real interest rates?
2. How is the risk-free rate determined in financial markets?
3. Why does inflation affect nominal interest rates?
4. How does the risk premium reflect investment risk?
5. What happens to nominal rates during periods of high inflation?

Tip: Always double-check the formula you are using to ensure each term is included correctly in your calculations!