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Guaranteed investment certificate (GIC) is a financial instrument that offers a return based on a corresponding GIC rate and the performance of a basket of certain stock and bond market indices. To determine the rate of return, the percentage change in each index level from the initial level is calculated. Here the initial level is set two days after purchase, while the final level is set to the arithmetic average of the last 11 month-ending index levels and the level one day prior to maturity.
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GIC Valuation
GIC Valuation
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