1. The current one-year T-bill rate is .33 percent and the expected one-year rate 12 months from now is 1.30 percent. According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

2. You have discovered that when the required rate of return on a bond you own fell by 0.5 percent from 8.1 percent to 7.6 percent, the fair present value rose from $945 to $965. What is the duration of this bond? Assume annual payments. ((Do not round intermediate calculations. Round your answer to 2 decimal place. (e.g., 32.12))