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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

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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 February 2, 2022, but the investor wou receive nothing until then. The value of the coupon showed as $8916 on the investor's screen. This means that the investor was giv- up $89.16 on February 2, 2016. In exchange for $100 to be received just less than six years later a. Based upon the $8916 price, what rate was the yield on the Province of Ontario 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 $9200. If an investor had purchased it for $8916 a year earlier and sold 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 c. If an investor had purchased the security at the market price of $9200 on February 2, 2017, and held it until it matured, 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

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