Investment Objectives Assignment Example | Topics and Well Written Essays - 750 words

Investment Objectives - Assignment ExampleThe selection is as follows1)1-Year Government of Canada Treasury billsThe annual sacrifice is 0.53%. It is a zero-coupon bond and thus bears no interest. Investors receive the par value at the maturity date. It cannot be redeemed before maturity and does not fox call provisions. It is issued by government of Canada, so it is considered almost risk-free as few imagine the Canadian government will default. But additionally, it has disadvantages which include depression returnNo periodic interest recompenses Low level of semiliquidity2)1-Year Government of Canada marketable bondsThe annual yield is 0.57%. Marketable bonds are more liquid than Treasury bonds as they are transferable and can be sold at a reasonable price. 3)1-Year BMO non-redeemable GIC with semi-annualinterest paymentThe semi-annually compounded rate is 0.875%. Compared to T-bills, GIC yields a higher(prenominal) return and pays interests semi-annually. Investors can enjoy f ixed income stream at each payment date. The principal and interest payments are guaranteed by BMO.4)1-Year Nova Scotia Bank non-redeemable GIC with monthly paymentThe semi-annually compounded rate is 0.775%. Investment into different banks helps dispersing business risk and makes the portfolio even safer. For this reason, purchasing from more than one bank is better than purchasing only from BMO, notwithstanding of the lower interest rate offered by Nova Scotia Bank.