Internet Application Problems


1		Information about the GICs offered by a financial institution is usually available on its Web site. At any one time, a chartered bank may have 10 or 12 varieties of GICs in its repertoire. In recent years, "financial engineers" have created more exotic forms of GICs. The rate of return on some is linked to the performance of a stock market. Here are the Home Page URLs of our largest financial institutions: Royal Bank Bank of Montreal CIBC Canada Trust Scotiabank TD Bank



2		Canada Investment and Savings is an agency of the federal Department of Finance. It maintains a web site providing information on Canada Savings Bonds, Canada Premium Bonds, and answers to frequently asked questions. Interest rates on all unmatured issues are available on the site. Calculators are provided that allow you to determine the amount you will receive if you redeem a particular CSB on a specific date.



3		Redemption Value of a Canada Savings Bond: Go to the Canada Investment and Savings web site and link to the interest rate table for Canada Savings Bonds. Update your textbook's Table 8.2 for the Series 50 CSB. If you own a $1000 face value S50 compound-interest CSB, for what amount could you redeem it at the beginning of next month? Do the calculation mathematically and then check your answer using the calculator available on the Web site.



4		Shopping for GICs. Visit Canoe for a comprehensive comparison of current rates available on GICs. How much more would you earn on $10,000 invested for 5 years at the highest available rate than at the lowest rate?

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