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

Simplest transporting devices, The simplest transporting devices are wh...

The simplest transporting devices are wheel barrows and hand trucks. These are still in use in number of small industries all over the country. Figure (a) shows a ha

Explain aperture-priority automatic mode, Question 1: (a) Using appropr...

Question 1: (a) Using appropriate examples to support your answer, list five types of photography used. (b) Define the term "aperture" (c) Give two uses of an aperture (d

Organisation initiator, T he Organisation initiator The initiator firs...

T he Organisation initiator The initiator first identifies the need to purchase a particular product or service to crack an organisational problem. Change management is a c

Success in a global knowledge economy, A key to success in a global knowled...

A key to success in a global knowledge economy Knowledge is the key to success. Organisations have to appreciate the competitive advantage of knowledge. Knowledge acquired has

Define the term sustainable development, In country X unemployment constitu...

In country X unemployment constitutes a national crisis. According to the Central Statistical Office of this country, in 1999, using the expanded definition that counts as unemploy

Quality assurance plan, Q uality assurance plan The quality assurance ...

Q uality assurance plan The quality assurance plan is to establish the goals, the process and the responsibilities needed to implement the effective quality assurance function

Cobol, Write a COBOL program to accept three subject marks and to display t...

Write a COBOL program to accept three subject marks and to display the total of marks and percentage of marks.

Types of internet e-banking websites, Problem a) (i) Name the two prim...

Problem a) (i) Name the two primary types of Internet e-banking websites. (ii) Clearly differentiate between these two types of e-banking websites. (iii) Outline the ris

Areas of responsibility - library management, Areas of Responsibility - lib...

Areas of Responsibility - library management: The main areas of responsibility of the maintenance section or division are: Taking responsibilities regarding a) the  method

Explain the concept of benchmarking, QUESTION 1 You are required to ...

QUESTION 1 You are required to (i) explain the concept of benchmarking (ii) identify and write short notes on the step involved in a benchmarking exercise QUESTION 2

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