Assuming your link contains no spaces, try =
translate(normalize-space(translate(/rss/channel/link, '/', ' ')), ' ', '/')
Edit:
To remove the closing slash from $string, if it exists:
substring($string, 1, string-length($string) - (substring($string, string-length($string))='/'))
In XSLT 2.0 this can be shortened by using the ends-with() function.