Fixed interest bearing instrument, Other Management

Assignment Help:

QUESTION

When an investment is made in a fixed interest-bearing instrument, the risk is that the secondary market rate at which these instruments trade will increase, with a resulting decrease in the value of the instrument. On the other hand investments in non-interest-bearing assets such as shares, carry the risk that prices may decrease, resulting in a loss of value

Therefore explain-

(a) Fixed interest bearing instrument

(b) How hedging fixed interest rate and non-interest-bearing investments are carried out with option contracts


Related Discussions:- Fixed interest bearing instrument

Steps literature search, STEPS LITERATURE SEARCH  There are many point...

STEPS LITERATURE SEARCH  There are many points to consider in making an effective literature search. The first and foremost step is to ascertain the purpose, scope, depth and

Card filing work and catalogue updating work, Card Filing Work: After ...

Card Filing Work: After the Accession List is made the catalogue cards relating to the released documents  are ready for merging with the catalogue. In the case of the Classif

Outline the organisational and behavioural factors, Question 1: Describ...

Question 1: Describe what is meant by ‘skilled-based', ‘rule-based' and knowledge-based behaviour. Explain in each case how these operating levels can give rise to human error

Purpose of information, Purpose of information: A researcher needs inf...

Purpose of information: A researcher needs information for three purposes.  To keep up with new developments in his area of interest;  To get acquainted with the state-o

Working of enterprise project management within the model, Working of EPM w...

Working of EPM within the model The replica of the enterprise functions provides the foundation for implementing a rigorous move to selecting projects that have both strategic

Show crisis management from a pr perspective, Question 1: Management ne...

Question 1: Management needs help when confronted by sudden crisis. It is required that crises be managed intelligently and forthrightly with the news media, Employees and the

Public-private-partnership, QUESTION a) Public sector projects are bein...

QUESTION a) Public sector projects are being resorted to on a public-private basis. Explain what is Public-Private-Partnership (PPP)? b) International financial institutions

Search in secondary sources - literature search, Search in Secondary Source...

Search in Secondary Sources  When secondary periodicals are available on the subject as well as on the broader subject, the search must first begin with the secondary periodic

Cost leadership strategy, QUESTION 1 (a) Based on the Strategic Impleme...

QUESTION 1 (a) Based on the Strategic Implementation Framework, discuss the various factors that should be considered when implementing a strategic plan. (b) What are the ma

Microforms - non-print materials, Microforms: Micropublishing is retro...

Microforms: Micropublishing is retrospective, being merely the reprinting of previously existing materials. Back files of newspapers,  periodicals and out-of-print materials a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd