Subject: 4104 Investments 2

1. Principal protected note:

CIBC Canadian Blue-Chip Growth Deposit Notes, Series 11

a. This note is guaranteed by __________________________________.

b. Can this note be held inside an investor's TFSA account?

c. An investor buys $17,000 of this note at $100.00 par value when it is newly issued. One hundred and forty days later, the investor decides to sell the entire note at $100.00 par value (the same price that he/she paid for them).

How much cash will the investor receive from the sale?

d. For the purpose of this assignment, assume that the initial price for all of the securities represented by this note is the closing price on October 26, 2018. If the investor holds this note until the maturity date, what total amount (proceeds) will he/she receive?

Assume the following closing prices for securities on the maturity date:

BMO -91.25

BNS - 60.45

BCE -96.64

GWL -26.50

Potash -31.68

Rogers -50.48

RBC -80.56

Shaw -24.00

Sunlife - 46.58

TransCanada- 62.45

Also, calculate the compounded annual rate of return.