rearrange: FV / PV = (1 + r)^n
using a full six years...and assuming annual compounding equivalents
100 / 76.34 = (1 + r)^6
1.30993^1/6 = 1 + r
1.04602 = 1 + r
r = 0.04602, or about 4.602%
to be exact, you have to figure out the real time horizon, e.g 5 years + #days/365, instead of the full six years
On February 2, 2013, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at ScotiaMcLeod, an investment dealer. Each coupon represented a promise to pay $100 at the maturity date on January 13, 2019 but the investor would receive nothing until then. The value of the coupon showed as $76.34 on the investor’s screen. This means that the investor was giving up $76.34 on February 2, 2013 in exchange for $100 to be received just less than six years later.
