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

Important qualities and skills required of negotiators, QUESTION 1 Nego...

QUESTION 1 Negotiators are likely to make systematic errors while processing information. Discuss the cognitive biases that are likely to hold back the performance of negotiato

Advantages of central processing, Advantages   of Central Processing C...

Advantages   of Central Processing Centralized processing has many advantages. For example.  1)  Duplication of work is avoided: The type of work involved in processing i

Explain four different types of organizational structure, QUESTION 1 An...

QUESTION 1 An organization structure is the organization framework by which job tasks are divided grouped and coordinated (a) Explain the four different types of organizatio

Acquisition, A c quisition An acquisition is slightly different from ...

A c quisition An acquisition is slightly different from a merger. Unlike all mergers, all acquisitions  involve  one  company  purchasing  another  -  there  is  no exchange

Explain its relevance to the public sector, QUESTION 1 (a) Every organi...

QUESTION 1 (a) Every organisation must focus on quality performance. With the help of a schematic diagram, define the following terms as applied to management performance and i

Beta of a share, Beta of a share Financial analysts often talk of the ...

Beta of a share Financial analysts often talk of the beta (b) of a share. We will describe what the beta signifies and the method commonly used to estimate it in this section.

Forcast demand, A firm uses simple exponential smoothing with à=0.1 to forc...

A firm uses simple exponential smoothing with à=0.1 to forcast demand.the forecast for first week of february was 500units whereas actual demand turned out to be 450units....1.for

Discuss and analyze the set of inter-related factors, QUESTION 1 The mu...

QUESTION 1 The museums of today serve increasingly complex institutional missions and diverse audiences through their programs. Critically discuss and analyze the role of museu

Customer marketing interface, five to make a displeased student to patonise...

five to make a displeased student to patonise a school canteen

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