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The following information was available as of the close of business June 1, 2004, on government of Canada bonds. Coupon Maturity Price Yield 5.00% June
The following information was available as of the close of business June 1, 2004, on government of Canada bonds.
Coupon | Maturity | Price | Yield |
5.00% | June 1, 2005 | 102.35 | 2.60 |
10.50% | June 1, 2006 | 113.91 | 3.26 |
8.50% | June 1, 2007 | 107.41 | 3.39 |
Calculate the anticipated one-year interest rate for 2006 (up to June 2007). (Round the final answers to 2 decimal places. Do not round intermediate calculations.)
Interest rate | |||
2nd year | % | ||
3rd year | % | ||
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