Monty purchased a strip bond for his RRSP. He paid $3,800 for a $5,000 face value bond with three years remaining until maturity. What semiannually compounded rate of return will he realize over the three years?

Semiannually Compounded

Interest computed twice a year, applying to both the initial principal and the interest already accrued from the first half of the year.

Rate of Return

The increase or decrease in the value of an investment during a set time frame, represented as a percentage.