2 Problem 5-16 Calculating Rates of Return (LO3) On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at Scor investment dealer. Each coupon represented a promise to pay $100 at the maturity date on February 2, 2022, but the receive nothing until then. The value of the coupon showed as $82.04 on the investor's screen. This means that the giving up $82.04 on February 2, 2016, in exchange for $100 to be received just less than six years later. a. Based upon the $82.04 price, what rate was the yield on the Province of Ontario bond? (Do not round intermed and round your final answer to 2 decimal places.) Rate of return % b. Suppose that on February 2, 2017, the security's price was $90.00. If an investor had purchased it for $82.04 it on this day, what annual rate of return would she have earned? (Do not round intermediate calculations an final answer to 2 decimal places.) Annual rate of return c. If an investor had purchased the security at the market price of $90.00 on February 2, 2017, and held it u rate of return would she have earned? (Do not round intermediate calculations and round your final ans Annual rate of return %

Problem 5-16 Calculating Rates of Return (LO3) On February 2, 2016, an investor held some Province of Ontario stripped couporis in a seif-administered pasp at Sco investment dealet Each coupon represemed o promise to pay $100 ot the maturity date on February 2,2022 , but th receive nothing until then. The value of the couporn showed as $82.04 on the investor's screen. This means that the giving up $82.04 on February 2 , 2016, in exchange for $100 to be recelved just less than six years later. a. Based upon the $82.04 price, whot rate was the yield on the Province of Ontario bond? (Do not round interme and round your finat answer to 2 decimat places.) Rate of return b. Suppose that on February 2, 2017, the security's price was $90.00. If an investor had purchased it for $82.0 it on this day, what annual rate of return would she have earned? (Do not round intermediate calculations an final answer to 2 decimal places.) Annual rate of return % If an investor had purchased the security at the market price of $90.00 on February 2,2017 , and held it te of return would she have earned? (Do not round intermediate calculations and round your final ans zual rate of return %