1. (PET) The current rate on a 1-year Treasury Bill is 2.05% (note: I just made up that value) and the rate on a 2-year Treasury Note is 2.45% (again, I just made up that number). According to the Pure Expectations Theory (PET), what is the expected rate on a 1-year Treasury Bill one year from now?

(Bonus: What added information would you need to calculate the expected rate on a 2-year Treasury Note one year from now?)