Table 1 Movement in Yields
	Start of Quarter	End of Quarter
Overnight rate	5.50%	5.50%
3 months	5.53%	5.52%
6 months	5.58%	5.54%
9 months	5.65%	5.60%
12 months	5.78%	5.59%
DB05	5.70%	5.55%
DB07	5.75%	5.70%
DB09	5.79%	5.92%
DB14	5.87%	6.10%

Table 2 Cost of Funds
Instrument	Coupon	Cost of Funds
CP3M	0.00%
DB05	5.70%
DB07	5.75%
DB09	5.79%
DB14	5.87%

Table 1 and Table 2 are extracted from the Lime team performance report for the period ending 14/06/2004. Coupons for all the bonds are paid semi-annually, in March and September.

All the bonds have a face value of $1mli, respectively, and they mature in the month of March (e.g. DB09 matures in March 2009).

Required:

1. What is the annualized cost of funds for CP3M for the quarter which ends in June 2004? No calculation is required.
2. What is the annualized cost of funds for DB05 for the quarter which ends in June 2004?
3. What is the annualized cost of funds for DB07 for the quarter which ends in June 2004?