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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%J une

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%J une 1, 2005102.352.60

10.50%June 1, 2006113.913.26

8.50%June 1, 2007107.413.39

Calculate the anticipated one-year interest rate for 2006 (up to June 2007).(Round the final answers to 2 decimal places.)

What isInterest rate2nd year, 3rd Year

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