What is a characteristic of the FTSE Canada Universe Bond index?
A.
US dollar bonds from Canadian issuers are included
B.
Only bonds with a term to mammy of 30 days or more are eligible for inclusion.
C.
It is a capitalization-weighted index.
D.
Only government bonds ate included
The Answer Is:
C
This question includes an explanation.
Explanation:
The FTSE Canada Universe Bond Index is acapitalization-weighted index, meaning that the weights of its components are based on their market value. It includes bonds from various issuers (both government and corporate) with terms to maturity of at least one year.
A. US dollar bonds from Canadian issuers are included: Only bonds denominated in Canadian dollars are included.
B. Only bonds with a term to maturity of 30 days or more are eligible for inclusion: Bonds must have a minimum term to maturity of one year, not 30 days.
D. Only government bonds are included: The index includes both government and corporate bonds.
[Reference:CSC Volume 1, Chapter 7, "Bond Indexes – FTSE Canada Universe Bond Index" explains its composition and weighting methodology., , ]
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