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

Benefits of b2b e-commerce in developing markets, Question: (a) What ...

Question: (a) What are the benefits of B2B E-Commerce in Developing Markets? (b) The B2B market has primary components: e-frastructure and e-markets, e_infrastructure is t

Reference services, Reference Services: Reference services help the us...

Reference Services: Reference services help the user define and identify his query correctly, bearing in mind how he intends to use the information, since this can affect the

Determine the length of the dipole, Question: (a) A uniform linear arr...

Question: (a) A uniform linear array consists of 20 vertical dipoles, each spaced by half a wavelength in the horizontal plane. (i) If all array elements are fed in phase,

Aligning mergers and acquisitions with corporate strategy, A ligning Merge...

A ligning Mergers and Acquisitions with Corporate Strategy In the previous section we learnt about the motives for acquisition. In this section, we will learn how to align Mer

Collation - binding processes, Collation: Collation is the first task ...

Collation: Collation is the first task in the binding processes. All the parts and the pages of a volume have to be correctly sequenced. In the case of periodicals, collation

Planning for negotiations , Planning for negotiations  A complex negoti...

Planning for negotiations  A complex negotiation requires specific planning to be successful. Without planning, a negotiator cannot possibly have the information required to ef

Library catalogue and the five laws of library science , LIBRARY CATALOGUE ...

LIBRARY CATALOGUE AND THE FIVE LAWS OF LIBRARY SCIENCE The Five Laws. of Library Science are a set of basic guiding principles for designing and operating a library or a libr

Punctuated equilibrium model, Punctuated Equilibrium Model Connie ...

Punctuated Equilibrium Model Connie Gersick's model of group development challenges the traditional forming/norming/storming/performing view of group development. The rese

Advantages and disadvantages of e-mail marketing, QUESTION (a) Give fou...

QUESTION (a) Give four reasons why e-mail is considered one of the most powerful of all marketing tactics. (b) Strategic Planning is the first step in the execution of an e-

Explain what you understand by strategic analysis, QUESTION 1 a) Explai...

QUESTION 1 a) Explain what you understand by strategic analysis b) What tools are available for environmental scanning? Select one and discuss its main components, supportin

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