If Your Sole Source of Income at Retirement Is OAS

question 74

Multiple Choice

If your sole source of income at retirement is OAS (based on 2010 figures) ,

• A)you will also receive the CPP supplement of $890 monthly.
• B)you will also receive the GIS of about $650 monthly.
• C)you will receive the GIS allowance, but it prevents you from earning other income.
• D)you will receive the supplement that will increase your income to about $20 000 per year.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date.

Par Value

The face value of a bond or the stated value of a stock, set at the time of issuance and often used in determining its worth at maturity.

Coupon Rate

The interest rate that an issuer of a bond promises to pay annually or semi-annually to the holder.

Default Risk Premiums

Default risk premiums are additional returns that investors require to compensate for the risk that a borrower might fail to make the required payments on their debt.