The following information was available as of the close of business June 1, 2004, on government of Canada bonds. Price Coupon 7.00% 10.70% 8.70% Maturity June 1, 2005 June 1, 2006 June 1, 2007 103.35 113.93 107.61 Yield 2.62 3.28 3.41 Calculate the anticipated one-year interest rate for 2006 (up to June 2007). (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Interest rate 2nd year 3rd year % %