Canadian Securities

Q1. What are the main characteristics of a fixed income security?

Q2. Briefly describe the following features of fixed income securities.

Coupon vs. market interest rates

Par value

Denomination

Term to maturity

Trading at discount

Trading at a premium

Q3. List the four main segments of the bond market based on term to maturity and provide the respective term to maturity time frames for each.

Q4. Briefly describe each of the following bond features.

Strip bonds

Callable or redemption feature

Sinking fund

Purchase fund

Extendible and retractable bonds

Convertible

Q5. How do Treasury bills differ from "regular" bonds? How is T-bill income taxed and how is this different than "regular" bonds?

Q6. Describe the major feature of each of the following types of debt instrument?

Mortgage bond:

Collateral trust bond:

Equipment trust certificates:

Subordinate debentures:

Corporate notes:

High-yield bonds:

Bankers' Acceptances:

Commercial paper:

Term deposits:

Guaranteed Investment Certificate:

Q7. Explain how Eurobonds, foreign bonds, and domestic bonds differ. Provide an example of each type of bond.

Q8. Assume you are an advisor and are gathering information for a client. Provide the following:

a.BoC Policy Interest rate

b."Latest data" - 3-month t-bill yield, 1-year t-bill yield

c."Latest data" - Government of Canada Marketable Bonds - Average Yield - 1 to 3 Year

d.Compare the GIC rates at 3 different Canadian Schedule I banks (major banks). The rates collected should be based on "standard/basic" non-cashable GICs, with no features and not on promotion. Weblinks must be direct to the rate listed below for verification purposes.

Bank 1 (name the bank, provide source weblink) < [Repeat for Bank 2 and Bank 3]

o6 months:

o1 year:

o3 years:

o5 years:

For "Q8 e,f,g" below use the following link:

https://www.blackrock.com/ca/individual/en/products/239485/ishares-canadian-corporate-bond-index-etf?switchLocale=y&siteEntryPassthrough=true

e.The investment objective for the iShares Canadian Corporate Bond Index ETF- XCB

f.Using the most recent "Semi-Annual Management Report of Fund Performance" for XCB, list the details of the top 5 holdings (Name, coupon, term (maturity date))

g.For XCB, list the Exposure Breakdown (Type and %) by Maturity, Sector, and Credit Quality