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The following Information was available as of the close of business June 1, 2004, on government of Canada bonds. Coupon 5.ee 10.80% 8.8% Maturity June

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The following Information was available as of the close of business June 1, 2004, on government of Canada bonds. Coupon 5.ee 10.80% 8.8% Maturity June 1, 2005 June 1, 2006 June 1, 2007 Price 103.85 113.94 107.71 Yield 2.63 3.29 3.42 Calculate the anticipated one-year interest rate for 2006 (up to June 2007). (Do not round intermediate calculations. Ro answers to 2 decimal places.) Interest rate % 2nd year 3rd year %

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