Question
The following information was available as of the close of business March 1, 20YY, on government of Canada bonds. Coupon Maturity Price Yield 8.25% Mar.
The following information was available as of the close of business March 1, 20YY, on government of Canada bonds.
| Coupon | Maturity | Price | Yield |
| 8.25% | Mar. 1, 20YY + 1 | 102.75 | 5.78 |
| 3.75% | Mar. 1, 20YY + 2 | 95.70 | 5.85 |
| 5.75% | Mar. 1, 20YY + 3 | 98.65 | 6.22 |
Calculate the anticipated one-year interest rate for 20YY + 2 (up to March 20YY + 3). (Round the final answers to 2 decimal places. Do not round intermediate calculations.)
| Interest rate | |||
| 2nd year | % | ||
| 3rd year | % | ||
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Capitalism And Commerce Conceptual Foundations Of Free Enterprise
Authors: Edward W. Younkins
1st Edition
0739103814, 0739152807, 9780739152805
