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The world's local bank
The world's local bank
Long-term debt issued by the federal government which provide semi-annual coupon (interest) payments. Government of Canada Bonds are highly liquid investments which may be sold back by investor into the secondary market prior to maturity.
Key Features & Benefits:
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Long-term debt issued by Government of Canada
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Minimum purchase amount of $100,000
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Semi-annual coupon (interest) payments
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Issued in multiples of $1,000
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Maturities from 1 to 30 years
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If held to maturity, return to investor will be the yield to maturity quoted on purchase date
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If sold prior to maturity, return to investor will be determined by semi-annual coupon payments, plus difference between purchase price and sale price
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Can be purchased in “stripped” form – either just the coupons or just the residual bond
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Investor’s return is subject to prevailing market conditions if sold prior to maturity
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Book-based (no physical delivery)
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One of the most liquid bonds available
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May be sold at either a discount or a premium to face value (depending on prevailing market conditions)
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Great for investors who place a premium on security of principal and interest
