The following information was available as of the close of business June 1, 2004. on government of Canada bonds. Coupon 7.00% 11.62% 9.60% Maturity June 1, 2005 June 1, 2006 June 1, 2007 Price 107.85 114.02 108.51 Yield 2.71 3.37 3.50 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 % Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three, and four years based on the following data. (Input your answers as a percent rounded to 2 decimal places. Do not round intermediate calculations.) 1-year T-bill at beginning of year 1 1-year T-bill at beginning of year 2 1-year T-bill at beginning of year 3 1-year T-bill at beginning of year 4 4% 6X 8% 9X Expected return 2-year security 3-year security 4-year security The following information was available as of the close of business June 1, 2004. on government of Canada bonds. Coupon 7.00% 11.62% 9.60% Maturity June 1, 2005 June 1, 2006 June 1, 2007 Price 107.85 114.02 108.51 Yield 2.71 3.37 3.50 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 % Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three, and four years based on the following data. (Input your answers as a percent rounded to 2 decimal places. Do not round intermediate calculations.) 1-year T-bill at beginning of year 1 1-year T-bill at beginning of year 2 1-year T-bill at beginning of year 3 1-year T-bill at beginning of year 4 4% 6X 8% 9X Expected return 2-year security 3-year security 4-year security