Using the data provide in table 1 and 2 below, prepare a revised estimate of (a) the one year forward interest rate implied by the November 1992 yield curve over the 1993-2002 period; and (b) the expected annual inflation rate in each of these years.

Babes-N-Toyland, Inc.: Risk Premia Information for Fixed-Income Securities. December 27, 1992 792 Cases Table 1 Treasury Security Yields \begin{tabular}{clll} Maturity & August 1991 & August 1992 & November 1992 \\ \hline 3 months & 5.33% & 3.13% & 3.20% \\ 6 months & 5.39 & 3.21 & 3.43 \\ 1 year & 5.78 & 3.47 & 3.80 \\ 2 years & 6.43 & 4.19 & 4.65 \\ 3 years & 6.80 & 4.72 & 5.23 \\ 4 years & 7.23 & 4.86 & 5.72 \\ 5 years & 7.43 & 5.60 & 6.12 \\ 6 years & 7.51 & 5.87 & 6.34 \\ 7 years & 7.74 & 6.12 & 6.56 \\ 8 years & 7.79 & 6.32 & 6.87 \\ 9 years & 7.86 & 6.47 & 6.95 \\ 10 years & 7.90 & 6.59 & 7.18 \\ 30 years & 8.14 & 7.39 & 7.53 \end{tabular}