A 30-year Government of Canada bond issued in 1996 now has six months to maturity. It is classified as:

Answer

A capital-market instrument, by original term

Options - A. A capital-market instrument, by original term - B. A money-market instrument, since under a year remains - C. Neither, until it is reissued - D. It depends on who issued it Why - A. Correct — the money/capital split is by term AT ISSUE. Thirty years at issue makes it capital-market for its whole life. - B. The remaining term is what a trader looks at to price it; it does not change the classification the security was born with. - C. Securities are not reclassified as they age; the category is fixed at issue. - D. The issuer is irrelevant to the split. The Government of Canada issues both T-bills (money market) and bonds (capital market).

IIAC, Canadian Conventions in Fixed Income Markets, Release 1.3 §1.4, §2.1 (discount instruments); Bank of Canada, CDOR cessation (28 June 2024) — observed 2026-09-17; OpenStax, Introduction to Business (CC BY 4.0) §16.3–16.4 — shape only