Term to maturity 2002 2001 Within 1 to 3 3 to 5 5 to 10 Over 10 Total book Total book 1 year years years years years value value Investment Securities Yield Yield Yield Yield Yield Yield Issued or guaranteed by: % % % % % % Canadian federal government $ 557 3.58 $ 588 4.38 $ — — $ — — $ — — $ 1,145 3.99 $ 436 Canadian provincial and municipal governments 2 2.90 — — — — — — — — 2 2.90 43 U.S. federal government 1,001 1.97 2,069 2.76 1,396 3.63 1,241 4.18 — — 5,707 3.14 2,801 U.S. states, municipalities and agencies 3,671 2.77 2,858 3.50 689 5.67 219 7.12 228 3.05 7,665 3.44 8,522 Other governments 34 4.19 32 5.21 6 6.38 11 5.65 — — 83 4.94 113 Mortgage-backed securities and collateralized mortgage obligations 1 13.75 — — 1 5.60 584 4.88 473 5.64 1,059 5.23 3,415 Corporate debt 944 4.28 625 5.64 1,279 6.87 352 5.28 191 4.55 3,391 5.63 4,078 Corporate equity 157 7.74 364 9.69 411 8.81 83 8.21 1,204 2.15 2,219 5.24 2,062 Total investment securities 6,367 3.07 6,536 3.90 3,782 5.67 2,490 4.90 2,096 3.25 21,271 4.02 21,470 Trading Securities Issued or guaranteed by: Canadian federal government 1,851 963 852 897 1,045 5,608 3,343 Canadian provincial and municipal governments 227 234 157 307 476 1,401 1,214 U.S. federal government 367 98 76 18 50 609 278 U.S. states, municipalities and agencies — — — — — — 337 Other governments — — — 19 — 19 — Corporate debt 2,711 362 216 439 1,211 4,939 3,924 Corporate equity — — — — 9,851 9,851 7,104 Total trading securities 5,156 1,657 1,301 1,680 12,633 22,427 16,200 Loan Substitute Securities 11 — 6 — — 17 6 Total Securities $ 11,534 $ 8,193 $ 5,089 $ 4,170 $ 14,729 $ 43,715 $ 37,676 Interest income and gains and losses from securities are:  Yields in the table above are calculated using the book value of the security and the contractual interest or stated dividend rates asso- ciated with each security adjusted for any amortization of premiums and discounts. Tax effects are not taken into consideration.  Securities of designated countries include any securities that we receive as part of a debt restructuring by a foreign country. They are recorded net of any country risk allowance (see Note 4) that we have allocated to these securities. The term to maturity included in the table above is based on the contractual maturity date of the security. Securities with no maturity date are included in the over 10 years category. During the year ended October 31, 2001 we sold our investment in Grupo Financiero BBVA Bancomer and realized a gain of $321 ($272 after tax). The gain was net of unrealized translation losses of $99. For actively traded securities, quoted market value is considered to be fair value. For infrequently traded securities, we use either the price of the most recent transaction or the midpoint between bid and ask price. For privately held securities and for thinly traded securities where market quotes are not available, we use estimation techniques to determine fair value. Estimation techniques used include discounted cash flows, multiple of earnings or comparisons with other securities that are substantially the same. BMO FINANCIAL GROUP ANNUAL REPORT 2002 73 Unrealized Gains and Losses 2002 2001 Gross Gross Gross Gross Book unrealized unrealized  Fair  Book unrealized unrealized Fair value gains losses value value gains losses value Investment Securities Issued or guaranteed by: Canadian federal government 1,145 $ — $ 2 $ 1,143 $ 436 $ 4 $ 17 $ 423 Canadian provincial and municipal governments 2 — — 2 43 — — 43 U.S. federal government  5,707 143 1 5,849 2,801 93 1 2,893 U.S. states, municipalities and agencies 7,665 107 — 7,772 8,522 110 — 8,632 Other governments 83 2 — 85 113 3 — 116 Mortgage-backed securities and collateralized mortgage obligations 1,059 29 — 1,088 3,415 53 — 3,468 Corporate debt 3,391 119 57 3,453 4,078 88 77 4,089 Corporate equity 2,219 48 67 2,200 2,062 101 113 2,050 Total 21,271 $ 448 $ 127 $ 21,592 $ 21,470  $ 452 $ 208  $ 21,714 (a) Included in write-downs for 2002 is $103 and for 2001 is $225 related to our equity investments in collateralized bond obligations. Interest expense is not included in the amounts shown above. 2002 2001 2000 Reported in: Interest, Dividend and Fee Income Investment securities $ 1,156 $ 1,610 $ 1,949 Trading securities 460 809 905 $ 1,616 $ 2,419 $ 2,854 Non-Interest Revenue Investment securities Gross realized gains $ 232 $ 480 $ 245 Gross realized losses (56) (73) (46) Write-downs (a) (322) (284) (16) Net realized gains (losses) and write-downs $ (146) $ 123 $ 183 Trading securities, net realized  and unrealized gains (losses) $ 10 $ 139 $ 166