The Nasdaq 100 will have to rise by 70.6% from its current level for investors in Canada Life's High...
The Nasdaq 100 will have to rise by 70.6% from its current level for investors in Canada Life's High Income Series III high yield bond to get their capital returned in full, writes David Griffiths. The three year bond with returns linked to the index is due to mature on 12 April 2003, It was launched at an index level of 3,553.81 but as of close of business on 18 July, the index was at 1,666.87. The terms and conditions of the bond allowed for a fall in the index of 20% before capital was at risk. However, the bond's structure includes a gearing ratio that means that every further 1% fa...
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