Q: Clarification, with respect to your answer re the guess for the next rate on these Debs. The way I understand it is as follows
The rate is calculated via 6.5 Pus or minus the rate of change in inflation, not the rate of inflation. Thus is the change of roi is 2% next march the interest rate on the debs would be 6,5-2=4.5
From csu ir news release:
This new interest rate is equal to the annual average percentage change in the “All-items Consumer Price Index” published by Statistics Canada during the 12 month period ending on December 31,
The rate is calculated via 6.5 Pus or minus the rate of change in inflation, not the rate of inflation. Thus is the change of roi is 2% next march the interest rate on the debs would be 6,5-2=4.5
From csu ir news release:
This new interest rate is equal to the annual average percentage change in the “All-items Consumer Price Index” published by Statistics Canada during the 12 month period ending on December 31,
5i Research Answer:
You are correct; The new interest rate is equal to the annual average percentage change in the “All-items Consumer Price Index” published by Statistics Canada during the 12 month period ending on December 31, 2024 plus 6.5%. So yes, it is the change in the rate, not the actual rate.