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

Solid waste management, The solid wastes from a summer camp with 100 childr...

The solid wastes from a summer camp with 100 children and a staff of 25 are to be collected once per week. If bottles and cans (representing 20% of the weight) are removed, paper

List and explain the risks, QUESTION a) Define risk as per the Public P...

QUESTION a) Define risk as per the Public Private Partnership Guidance Manual b) What are the primary objectives of transferring risks from a contracting authority to a priv

Library organisational structure -library management, LIBRARY ORGANISATION...

LIBRARY ORGANISATIONAL  STRUCTURE   OBJECTIVES  We have learnt in Unit 1 that an organisation has to be structured in order to achieve its goals and objectives. In this

Analyze the crisis scenario, In 2000, various instances were reported in wh...

In 2000, various instances were reported in which Ford owners with Firestone tyres were experiencing tyre blowouts ultimately causing around 150 deaths and over 500 serious injuri

Businesses are exposed to scrutiny and criticisms, QUESTION 1 Why is it...

QUESTION 1 Why is it that businesses are increasingly exposed to scrutiny and criticisms? How can they cope with these? QUESTION 2 What are the implications for corpora

Legal aspects of health care management, 1. What is meant by the term "stan...

1. What is meant by the term "standard of care" in the context of medical liability? Provider examples as to the application of this legal term. How is this standard determined and

Conservation - library management, Conservation: The second aspect of...

Conservation: The second aspect of maintenance work is book conservation. Only books in good physical condition should be allowed to stay  on shelves. Constant shelf checking

Types of observation, Types  of Observation: Types of observation rela...

Types  of Observation: Types of observation relate  to  the  observer-observed relationship. It has been described as "concealment and participant", "concealment and non- part

Reasons for a negotiation , Reasons for a negotiation  As we now aware ...

Reasons for a negotiation  As we now aware that negotiation is a process, we will now learn the reasons for which the negotiation plays a crucial role.   Detailed negotiatio

Elements of a strategic design, E l e ments of a strategic design Th...

E l e ments of a strategic design The elements of strategic design are: V i sion: This is the big picture of where the organisation wants to be in the future. This ma

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