Bond Montreal Bank 0% ( US06374VAF31 ) in USD

Issuer	Montreal Bank
Market price	100 % ▲
Country	Canada
ISIN code	US06374VAF31 ( in USD )
Interest rate	0%
Maturity	13/10/2027
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Minimal amount	/
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Cusip	06374VAF3
Detailed description	Bank of Montreal (BMO) is a major Canadian multinational bank offering a wide range of financial services including personal and commercial banking, wealth management, and investment banking, operating across North America and internationally. This financial analysis provides an overview of a specific bond instrument, identified by its ISIN US06374VAF31 and CUSIP 06374VAF3, issued by the prominent Canadian financial institution, Bank of Montreal. Bank of Montreal (BMO), established in 1817, stands as one of Canada's largest diversified financial services providers, with a robust presence across North America and a global footprint; the bank offers a comprehensive suite of banking, wealth management, and capital markets products and services, and its debt issuances like this bond are integral to its funding strategy and capital management activities. This particular bond, denominated in United States Dollars (USD) and issued from Canada, carries a maturity date of October 13, 2027. A distinctive characteristic of this instrument is its 0% interest rate, categorizing it as a zero-coupon bond; unlike conventional bonds that provide periodic interest payments, this bond accrues interest internally, with investors receiving its full face value at maturity, typically having acquired it at a discount to that face value. The current market price is noted at 100% of its par value, implying that the bond is currently trading at its principal redemption amount, or is being quoted at its par value for redemption purposes. Despite a listed payment frequency of two, which typically indicates semi-annual disbursements, it is crucial to understand that, as a zero-coupon instrument, no interim cash interest payments are made to bondholders; the entirety of the investor's return is realized solely upon the bond's maturity.