430 B
430 B
T-bills in a nutshell:
- Issued by the federal government (not provincial — rules out D)
- No coupon — sold at discount, mature at face value (rules out A)
- Terms of approximately 3 months, 6 months, and 1 year (rules out B)
- Return is taxed as income, not capital gains — this is a specific exam fact worth remembering
- Auctioned every two weeks by the Ministry of Finance through the Bank of Canada