Bond Ontarian Province 0% ( CA68323ZK243 ) in CAD

Issuer	Ontarian Province
Market price	100 % ⇌
Country	Canada
ISIN code	CA68323ZK243 ( in CAD )
Interest rate	0%
Maturity	13/01/2033
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Minimal amount	1 CAD
Total amount	/
Cusip	68323ZK24
Detailed description	Ontario is Canada's most populous province, boasting a diverse economy, abundant natural resources, and major urban centers like Toronto, Ottawa, and Hamilton. Financial Instrument Spotlight: Province of Ontario Zero-Coupon Bond (CA68323ZK243) This financial article provides an in-depth analysis of a specific fixed-income security, namely a bond issued by the Province of Ontario, identified by its International Securities Identification Number (ISIN) CA68323ZK243 and its CUSIP code 68323ZK24. This type of instrument is fundamental for both institutional and retail investors seeking exposure to sovereign-backed debt within the Canadian market, offering a unique set of characteristics that merit detailed examination. The issuer, the Province of Ontario, stands as Canada's most populous province and a significant sub-sovereign entity within the Canadian federation. As a provincial government, Ontario regularly accesses global capital markets to secure funding for its extensive public services, which encompass critical sectors such as healthcare, education, infrastructure development, and various social programs essential to its population's well-being. The province's fiscal strength, robust economic fundamentals, and stable governance structure underpin its ability to issue debt, making its bonds a cornerstone for portfolio diversification and capital preservation. Ontario's debt instruments typically carry strong credit ratings, reflecting its prudent financial management and its integral role within Canada's highly developed economic framework. Delving into the bond's specific characteristics, it is notably classified as a zero-coupon bond, distinguished by its 0% interest rate, or coupon. Unlike traditional fixed-income securities that disburse periodic interest payments to bondholders, a zero-coupon bond is characteristically issued at a discount to its face (par) value and subsequently matures at its full par value, with the investor's return solely derived from the capital appreciation between the purchase price and the redemption price at maturity. According to current market data, this particular bond is presently trading at 100% of its par value, indicating that its current market price aligns precisely with its face value. Denominated in Canadian Dollars (CAD) and originating from Canada, the bond is scheduled to reach its maturity date on January 13, 2033, establishing a clear future date for the principal repayment to investors. The minimum acquisition size for this instrument is set at 1 unit, catering to a range of investor scales. While a payment frequency of "1" is noted in its specifications, for a zero-coupon instrument, this characteristic typically signifies that the sole "payment" to the bondholder is the full principal repayment occurring exclusively at the bond's maturity date, rather than periodic interest distributions. For investors considering this instrument, a zero-coupon bond trading at par with a 0% coupon rate implies a unique investment profile where the yield to maturity is effectively zero if the bond is acquired at its current market price and held until redemption. This specific kind of instrument may particularly appeal to investors with precise long-term liability matching requirements, those operating within an investment environment where capital preservation is the paramount objective over income generation, or those seeking a highly liquid and creditworthy asset for short-term liquidity management or as a low-volatility component within a broader, diversified fixed-income portfolio, offering direct exposure to the robust credit quality of the Province of Ontario.