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

Libraries as facilitators, Libraries as Facilitators: The libraries ar...

Libraries as Facilitators: The libraries are no longer passive observers of users trying to find their ways in libraries to locate what they want and are no more considered as

Technical section -staff activity area of library building, Technical Secti...

Technical Section -Staff Activity Area of library building in library management As mentioned earlier, cataloguing, and classification are the  principal technical activities

Define creativity, Question 1 What are special events? Give example. Wh...

Question 1 What are special events? Give example. What is meant by vision statement? What are the components of a good vision statement? Question 2 Every bidding doc

Define the service providers under foreign trade policy, Question A ) Disc...

Question A ) Discuss the changes in the composition of India's export and import since 1991. How has this affected Balance of payment situation of India? Question B ) Trading

Value of information services , VALUE OF INFORMATION SERVICES: At the ...

VALUE OF INFORMATION SERVICES: At the outset, it must be emphasised that there is no consensus of opinion among information scientists and professionals regarding the "concept

Subject classification - library management , Subject classification: ...

Subject classification: A Compound Subject is a basic subject when it has at least one focus, or has at least an aspect, i.e., it has a basic facet and one or more isolate

A structural model: domain, A Structural Model: domain, community and pract...

A Structural Model: domain, community and practice In spite of having a variety of forms which the communities of practice take a lot of basic structure is shared. A community

Write break down or corrective or remedial maintenance, Question 1 Write b...

Question 1 Write break down or corrective or remedial maintenance. Question 2 Explain the planning principles in maintenance management, Question 3 The principles used i

Stack -circulation area in library building, Stack -Circulation Area in lib...

Stack -Circulation Area in library building-library managenent Stacks are the storage spaces for the various types of documents kept in a library. The types of documents gener

Understanding body language, Understanding body language  Body language...

Understanding body language  Body language implies non verbal communication that involves body movements. What we try to deliver through verbal means may not be similar to the

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