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

Special furniture items-library furniture-library management, Special Furni...

Special Furniture Items-library furniture-library management Besides the above mentioned library furniture, a few other items worth considering are:  Book trolley, whi

Forms and records - technical department, FORMS AND RECORDS: The Techn...

FORMS AND RECORDS: The Technical Department does not  have  to maintain any register unlike other departments, However, it has the use of other appropriate records, forms and

Identify and explain the recent, QUESTION 1 As the marketing executive ...

QUESTION 1 As the marketing executive of Burger King, what are the recommendations that you can make to the Board of Directors to improve sales and recover market share apart f

Problems of dds and role of internation organisation, PROBLEMS OF DDS AND R...

PROBLEMS OF DDS AND ROLE OF INTERNATION ORGANISATION: Copyright issues, non-availability of publications and restrictions imposed on the storage and delivery of documents elec

The quick slice approach, QUESTION 1 What are the main steps involved i...

QUESTION 1 What are the main steps involved in implementing S&OP as part of an ERP implementation? QUESTION 2 The ERP project schedule is the basic control tool used to

What is tax planning, Question 1 How are taxable entities divided for the ...

Question 1 How are taxable entities divided for the purpose of determining their residential status? Question 2 What do you understand by expenditure on scientific research?

Community, C ommunity The community element requires attention, organi...

C ommunity The community element requires attention, organisation and also nurturing. The members of the community might choose to join together to help each other and share t

Describe and illustrate the term non ionizing radiation, Question 1: ...

Question 1: (a) Describe and illustrate the term ‘non ionizing radiation'. (b) In what ways will noise affect workers? (c) How will the effects of noise, as a hazard,

Aids to searching in opac, Aids to Searching   Subject searching in OPA...

Aids to Searching   Subject searching in OPAC creates certain problems for the users. Several OPACs have been developed to ease vocabulary selection and aid in searching. When

Debt management policy, ‘The overall objective of debt management is to min...

‘The overall objective of debt management is to minimise the cost of borrowing to the organisation.' Required: I. Explain factors which need to be taken into account, other t

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