Suppose $2-$year Treasury bonds yield $5\mathrm{.}8\%,$ while $1-$year bonds yield $6\mathrm{.}6\%.$ r$*$ is $1\mathrm{.}25\%,$ and the maturity risk premium is zero. Use minus sign for any negative expected inflation rate.

Using the expectations theory, what is the yield on a $1-$year bond $1$ year from now? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places.

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What is the expected inflation rate in Year $1?$ Do not round intermediate calculations. Round your answer to two decimal places.

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What is the expected inflation rate in Year $2?$ Do not round intermediate calculations. Round your answer to two decimal places.