On what is the dividend rate for rate-reset preferred shares based?

Rate-reset preferred shares have dividend rates that are reset periodically, typically every five years, based on the five-year Government of Canada bond yield plus a predetermined spread. This mechanism ensures that the dividend rate adjusts to reflect prevailing market interest rates, offering investors some protection against interest rate risk.

Study Document References:

Volume 1, Chapter 8:Preferred Share Features, explaining rate-reset preferred shares and their relationship to bond yields​​.