Interesting... thanks for the education! I'm intimidated by bonds so I only buy ETFs.Yes it is. You don't actually get paid any interest. You buy the bond (coupon) at a discount and collect the full face value at maturity. In the case I mentioned, I paid about 83.00 and would have received $100 at maturity. For tax purposes, you have to declare interest each year even although you don't receive it. You also have to add this annual interest to your acb. At maturity, your acb equals the face value so there is capital gain. Not a problem in a registered account, but a lot of accounting in taxable account.
Nomenclature is confusing - Strip bonds, coupon bonds etc. Some info here: Investing in strip bonds (part 1) | Qtrade Investor