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On January 1, 2020, three bonds with $1,000 par value will mature at par at the end of year 1, year 2, and year 3,

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On January 1, 2020, three bonds with $1,000 par value will mature at par at the end of year 1, year 2, and year 3, respectively. The annual coupon rate is 8% for all bonds. The prices of the three bonds are given on January 1, 2020 as following: Maturity Date Price December 31, 2020 $1,033.49 December 31, 2021 $1,056.17 December 31, 2022 $1,064.65 These prices are based on an annual rate of interest i in 2020, j in 2021, and k in 2022. Calculate the annual rate of interest i, j, and k. (10 marks)

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