On February $2,2016,$ an investor held some Province of Ontario stripped coupons in a self

administered RRSP at Scotia McLeod, an investment dealer. Each coupon represented a promise

to pay $$100$ at the maturity date on January $13,2022,$ but the investor would receive nothing

until then. The value of the coupon showed as $$76\mathrm{.}04$ on the investor's screen. This means that

the investor was giving up $$76\mathrm{.}04$ on February $2,2016,$ in exchange for $$100$ to be received just

less than six years later.

Based upon the $$76\mathrm{.}04$ price, what rate was the yield on the Province of Ontario bond? $(3$

points$)$

Suppose that on February $2,2017,$ the security$\text{'}$s price was $$81\mathrm{.}00.$ If an investor had

purchased it for $$76\mathrm{.}04$ a year earlier and sold it on this day, what annual rate of return

would she have earned? $(4$ points$)$

If an investor had purchased the security at market on February $2,2017,$ and held it until

it matured, what annual rate of return would she have earned? $(4$ points$)$

Please give the complete process, thank you very much!