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

Use of fca dispirit communities, Q. Will the use of fca dispirit communitie...

Q. Will the use of fca dispirit communities from allowing the environment while they consider solid waste management options? No. While FCA only obtain into account the tangibl

Definitions of classification terminology, DEFINITIONS OF CLASSIFICATION TE...

DEFINITIONS OF CLASSIFICATION TERMINOLOGY: Most of the terms with definitions were used for the first time in the first edition of Prolegomena to Library Classification (1937)

Purpose of the integrated management project, The Integrated Management Pro...

The Integrated Management Project is designed to: develop your capability to think and act strategically test your ability to apply the concepts taught and techniques le

Weeding - library management, Weeding  In course of time some  books i...

Weeding  In course of time some  books in the library become outdated (e.g. books with statistics). Some time later research result into making information in earlier edition

Quality and attribute measure of quality, QUESTION 1 A restaurant has e...

QUESTION 1 A restaurant has experienced a sudden increase in customer complaints and as a consequence the restaurant has been losing customers and orders. The quality manager w

Different types of hospitality offering businesses, Question 1: (a) Sho...

Question 1: (a) Show what is meant by the managerial environment? Illustrate your answer with specific examples using both internal and external environmental influences within

Objectivity and economy - characteristics of research tool, Objectivity: ...

Objectivity: Objectivity means freedom from bias. A test should yield a clear  score value for each performance, the score being independent of the personal judgment  of the

Recent trends in document delivery service, Recent Trends in document deliv...

Recent Trends in document delivery service: Recent Trends As mentioned earlier document delivery scene has changed with the emergence of a large number of electronic databases

Jewetts rules - british museum cataloguing rules, Jewetts Rules - British m...

Jewetts Rules - British museum cataloguing rules: Jewett, Charles Coffin. Smithsonian report on the construction of catalogues of libraries and their publication by means of s

Reasons for mergers and acquisitons, There are numerous reasons for a compa...

There are numerous reasons for a company to peruse M and A. Some of them are listed below: The M and A are undertaken to achieve specific financial, business and strategic

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