Bond Montreal Bank 0% ( US06374VVM52 ) in USD

Issuer	Montreal Bank
Market price	100 % ▲
Country	Canada
ISIN code	US06374VVM52 ( in USD )
Interest rate	0%
Maturity	01/06/2027
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Minimal amount	1 000 USD
Total amount	/
Cusip	06374VVM5
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. A detailed examination of a specific debt instrument issued by the Bank of Montreal reveals key characteristics pertinent to fixed-income investors. The issuer, Bank of Montreal, is a venerable Canadian multinational investment bank and financial services company. As one of Canada's 'Big Five' banks, BMO holds a significant position in the North American financial landscape, offering a comprehensive suite of banking, wealth management, and capital markets products and services to individuals, businesses, and institutions globally. Its long-standing history, dating back to 1817, and robust market presence underscore its standing as a prominent and reliable financial entity. This particular bond, identified by ISIN US06374VVM52 and CUSIP 06374VVM5, is a debt obligation issued from Canada. A key characteristic is its stated interest rate of 0%, classifying it as a zero-coupon instrument, yet it is currently trading at 100% of its nominal value. This implies that if held to its maturity date of June 1, 2027, the investor would receive the principal amount equal to their initial investment, resulting in a yield to maturity of 0%. Unlike traditional bonds with periodic interest payments, this instrument does not distribute coupons; the only cash flow for the investor is the repayment of principal at maturity. While a 'payment frequency' of 2 is listed, for a zero-coupon bond, this typically refers to the absence of periodic coupon payments, with the single principal repayment occurring at maturity. The bond is denominated in USD. The minimum purchase size for this bond is set at 1,000 units, making it accessible to investors looking to diversify their fixed-income portfolios with a specific type of instrument. In summary, this Bank of Montreal bond represents a distinctive fixed-income offering, characterized by its zero-coupon structure, USD denomination, and current trading at par, suggesting a 0% yield to maturity if held until its June 2027 redemption.