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

Has fca be efficient in addressing privatization questions, Q. Has FCA be e...

Q. Has FCA be efficient in addressing privatization questions? Ans. Yes. Greensboro, North Carolina, faced this issue, and FCA was instrumental in trade with it. When the

Value-added information services, VALUE-ADDED INFORMATION SERVICES ' V...

VALUE-ADDED INFORMATION SERVICES ' Value-added' is a term now widely and increasingly used in the context of information systems and services. It is however a highly nebulous

What is strategic management, QUESTION a) What is Strategic Management?...

QUESTION a) What is Strategic Management? b) With the help of a diagram describe the main elements of strategic management process c) Why strategy implementation often is

Probability sampling, Probability Sampling: Probability sampling invol...

Probability Sampling: Probability sampling involves the use  of  random selection process  to  select a sample  from members  or  elements of a population. The goal of probabi

Purchase request , Purchase Request  In the previous section, you learn...

Purchase Request  In the previous section, you learnt about purchase and buy decision where the production manager decides the right part so that it can be used effectively. No

Explain the process involved in hr audit, Question 1 Explain the opportuni...

Question 1 Explain the opportunities and challenges in healthcare HRM Question 2 Discuss employee grievance systems in healthcare Question 3 Transactional analysis

Define quality management system, Question 1 Define Quality Management Sys...

Question 1 Define Quality Management System. Describe the scope of Quality management system Question 2 Explain Design review and Design verification Question 3 Explain

Challenges in quality improvement, C hallenges Quality improvement can...

C hallenges Quality improvement can create conflicting situations and could result in complications. Project team members may be disillusioned by the past failures. The past e

Quality improvement methodology, Quality I mprovement methodology For ...

Quality I mprovement methodology For   Quality   Improvement,   the   Plan-Do-Check-Act   cycle   approach   is generally  used.  The  PDCA  (Plan-Do-Check-Act)  cycle  also

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