1. Suppose the spot rate on one-year bond is 1.15%, the spot rate on two-year bond is 1.25%, and the liquidity premium for year 2 is 0.1%. If the liquidity premium theory of the term structure of interest rates holds, the expected one-year rate one year from now is ______ percent. round your answer to 2 decimal places

2. A dealer is quoting a $100,000 face 180-day T-bill quoted at 2.75% bid, 2.65% ask. You (investor not dealer) could buy this bill at ______ or sell it at _______.