Why Are the Interest Rates of Government of Canada Notes

question 97

Multiple Choice

Why are the interest rates of Government of Canada notes less than the interest rates of equivalent corporate bonds?

• A)The Canadian government has a high credit spread.
• B)There is significant risk that the Canadian government will default.
• C)Canadian government securities are widely regarded to be risk-free.
• D)Canadian government securities are generally used to determine interest rates.
• E)Canadian government securities have a larger supply and thus a lower price.

---

Definitions:

Employee Development

Initiatives taken by an organization to improve the knowledge, skills, and abilities of its employees.

Strategic Business Partner

A role within organizations where departments or individuals support and align their activities with the overall business strategy and goals to drive success.

Training Styles

Different approaches or methods used in training and instruction, such as hands-on, participatory, lecture-based, or technology-assisted, tailored to meet learners' preferences or requirements.

Talent And Development

The process of identifying, nurturing, and developing individuals' skills and abilities within an organization for future roles and responsibilities.