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 yield is 0.53%. It is a zero-coupon pose and thus bears no engagement. Investors receive the par value at the maturity date. It natesnot be redeemed beforehand maturity and does not have 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 Low returnNo periodic interest payments Low level of liquidity2)1-Year Government of Canada marketable bondsThe annual yield is 0.57%. sellable bonds are more liquid than Treasury bonds as they are transferable and can be interchange 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 return and pays interests semi-annually. Investors can enjoy fixed income s tream 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 withal safer. For this reason, purchasing from more than one bank is better than purchasing only from BMO, despite of the lower interest rate offered by Nova Scotia Bank.