How much cash will the investor receives from the sale

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Reference no: EM133035157

Questions - Principal protected note: RBC Principal Protected Canadian Energy Growth Notes, Series 6

a. This note is guaranteed by __________________________________.

b. Can this note be held inside an investor's RESP account?

c. An investor buys $9,000 of this note at $100.00 par value when it is newly issued. Seventy days later, the investor decides to sell the entire note at $100.00 par value (the same price that he/she paid for them).

How much cash will the investor receives from the sale?

d. For the purpose of this assignment, assume that the initial price for all of the securities represented by this note is the closing price on October 26, 2018. If the investor holds this note until the maturity date, what total amount (proceeds) will he/she receive?

Assume the following closing prices for the securities on the maturity date:

ARC energy - 35.60

Cdn Nat Res - 44.25

Cenvous Energy - 13.12

Crescent Pt En - 25.63

Encana -33.65

Husky energy - 31.98

Inter pipeline - 41.25

Peyto Explor. - 18.87

Suncor - 67.11

Transcanada - 82.61

Also, calculate the compounded annual rate of return.

Reference no: EM133035157

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