1. A 2-year Treasury security currently earns 1.89 percent. Over the next two years, the real risk-free rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.60 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)

2. A 6.95 percent coupon bond with 29 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,117.35. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)