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 $82.04 on the investor’s screen. This means that the investor was giving up $82.04 on February 2, 2013, in exchange for $100 to be received just less than six years later.
A. 3.35%
B. 3.00%
C. 30.0%
D. 2.25%