Assume that the real risk-free rate is 1.8% and that the maturity risk premium is zero. If a 1-year Treasury bond yield is 6% and a 2-year Treasury bond yields 6.5%. Calculate the yield using a geometric average.

1. What is the 1-year interest rate that is expected for Year 2? Do not round intermediate calculations. Round your answer to two decimal places. %
2. What inflation rate is expected during Year 2? Do not round intermediate calculations. Round your answer to two decimal places. %