1. Suppose the real rate is 2.6 percent and the inflation rate is 4.2 percent. What rate would you expect to see on a Treasury bill? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
2. Current government treasury bills (i.e., short-term bonds) are priced at 96.8% of par, which is $1000. These bonds mature 1 year from today and do not pay a coupon. What is the yield to maturity on these bonds?