The yield to maturity on one-year zero-coupon bonds is 8.9%. The yield to maturity on two-year zero-coupon bonds is 9.9%. Required: a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 decima places.) b. If you believe in the expectations hypothesis, what is your best guess as to the expected value of the short-term interest rate next year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)