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Pepsi has a storage cost equivalent to 8% per year for all maturities. The spot price of Pepsi is $100 per barrel and the 6

Pepsi has a storage cost equivalent to 8% per year for all maturities. The spot price of Pepsi is $100 per barrel and the 6 and 12 months prices for futures contracts on Pepsi are $97.53 and $101, respectively. The continuously compounded interest rate for 6 and 12 months is 2% per year. What are the 6 and 12 month convenience yields and the lease rates on Pepsi, expressed as an interest rate? (Give your results as an annual rate)

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