4. 12.5 Problem 5-16 Calculating Rates of Return (L03) On February 2, 2016, an investor...

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4. 12.5 Problem 5-16 Calculating Rates of Return (L03) On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at Scotia Mcleod, an Investment dealet. Each coupon represented a promise to pay $100 at the maturity date on February 2, 2022, but the investor would receive nothing until then. The value of the coupon showed as $82.09 on the investor's screen. This means that the investor was giving up $82.09 on February 2, 2016, in exchange for $100 to be received just less than six years later, a. Based upon the $82.09 price, what rate was the yield on the Province of Ontarlo bond? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Rate of return b. Suppose that on February 2, 2017 the security's price was $9100. If an investor had purchased it for $82.09 a year earlier and sold it on this day, what annual rate of return would she have earned? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return 1% c. If an investor had purchased the security at the market price of $9100 on February 2, 2017 and held it until it matured, what annual rate of return would she have earned? (Do not found intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return

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