The following information was available as of the close of business June 1, 2004, on government of Canada bonds. Coupon 5.00% 12.00% 10.eex Maturity June 1, 2005 June 1, 2006 June 1, 2007 Price 109.85 114.06 108.91 Yield 2.75 3.41 3.54 Calculate the anticipated one-year interest rate for 2006 (up to June 2007). (Do not round intermediate calculations. Round the answers to 2 decimal places.) Interest rate 2nd year 3rd year %