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

Computer-based and equipment for non-print materials, Computer-based Materi...

Computer-based Materials: Computer-based materials are a recent development but have become very important to modern libraries of  all types, specifically computerised bibliog

Outline various steps of the policy analysis process, QUESTION 1 Policy...

QUESTION 1 Policy implementation is the most critical stage of the policy process. Critically analyse some of the main constraints that hinder the implementation of public poli

State five objectives that the ppa 2006 aims to achieve, QUESTION The P...

QUESTION The Public Procurement Act 2006 (PPA 2006) is a modern procurement legislation based on UNCITRAL Model Law. PPA 2006 was enacted in 2006 and came into force in 2008. A

Rightpages and science direct, RightPages and Science Direct: Online ...

RightPages and Science Direct: Online Document Delivery Services Another two publishers, namely Springer-Verlag and Elsevier Science, have announced launching of online docum

Sescribe the principles of bureaucratic management, Question 1: (a) Des...

Question 1: (a) Describe the five principles of bureaucratic management put forward by Max Weber. (b) Elaborate on the advantages and disadvantages of bureaucratic manageme

Explain an alternative model of change, Question: "According to Lewin, ...

Question: "According to Lewin, change underlies the modification of those forces that keep a system's behaviour stable" (a) Why do people in organisations at times prefer t

Quality control, Q uality control Quality control uses techniques and ...

Q uality control Quality control uses techniques and performs activities to compare actual quality  performance  with  requirements  and  define  appropriate  actions  if ther

Organizational behaviour, #questionA large unit manufacturing electrical go...

#questionA large unit manufacturing electrical goods which has been known for its liberal personnel policies and fringe benefits is facing the problem of low productivity and high

Role of regulator and players, Question 1 Consider yourself as a chief fin...

Question 1 Consider yourself as a chief financial officer, describe the treasury functions that you handle and discuss how you will formulate the treasury policy Question 2 T

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