Assume that the real risk-free rate is 2% and that the maturity risk premium is zero. If a 1-year Treasury bond yield is 7% and a 2-year Treasury bond yields 9%, what is the 1-year interest rate that is expected for Year 2? Calculate this yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places.

What inflation rate is expected during Year 2? Do not round intermediate calculations. Round your answer to two decimal places.