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

Drawbacks of centralised cataloguing, Drawbacks   Pooling up the nec...

Drawbacks   Pooling up the necessary funds to opt for centralized cataloguing may be difficult for some libraries.  Because of local variations it may be difficult to go

Major types of validity, Major Types of Validity: Different aspects or...

Major Types of Validity: Different aspects or facets of  validity  questions are explained by  the type of validity, and number of  indirect and logical methods have evolved t

R charts, R Chart In this part we are going to look at control charts w...

R Chart In this part we are going to look at control charts which are directed towards monitoring the variability in case of individual characteristics like the variability in

Bibliographic data formats, Bibliographic data formats Bibliographic d...

Bibliographic data formats Bibliographic data formats adopted for exchange of data consist of three basic components:  A defined physical structure: Rules for the arra

Explain communities of practice, Question 1 Discuss the various tools used...

Question 1 Discuss the various tools used for understanding data Question 2 Write short notes on The Enterprise Project Management Model Question 3 Explain communities o

Identify the organizational sources of resistance to change, QUESTION 1 ...

QUESTION 1 Explain Intra-individual conflict with appropriate examples. QUESTION 2 Persons seeking compliance use certain tactics designed to tip the balance in their f

Mergers, M ergers Merger happens when two companies, mostly of the sam...

M ergers Merger happens when two companies, mostly of the same size, agree to go forward as a single new company in the best interest of both. The shareholders of the involved

Integrated solid waste management, Question: A recent report recommends...

Question: A recent report recommends that 'Coherent with Integrated Solid Waste Management practice, a Waste-to-Energy plant should be implemented in Mauritius. However, its ca

Assessment of project quality, A ssessment of Project Quality Quality ...

A ssessment of Project Quality Quality management can be measured by having three main components: Quality control. Quality assurance. Quality improvement.

Construct a cedar eee analysis for an event, Question 1: You are to set...

Question 1: You are to set up your biggest conference room for a cocktail party for a renowned bank in Mauritius. The cocktail is scheduled to start at 19h00. However, the same

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