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

Biology, What are the characteristics of Protozoa?

What are the characteristics of Protozoa?

Organization of petroleum exporting countries (opec), Organization of Petro...

Organization of Petroleum Exporting Countries  (OPEC) This is the most important international commodity group (ICG) in the world. It is the model of a successful internationa

Explain the concept behind electronic check, Question: a) List and des...

Question: a) List and describe the role of the different parties involved in any e-payment system. b) Outline five factors (characteristics) that determine the acceptance

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

Describe importance of information to top management, Question 1: (a). ...

Question 1: (a). Outline the major elements which make up the i) Macro (External) environment. ii) Micro (Internal) environment. (b). Discuss five methods that can be use

Kinds of library bindings, KINDS OF LIBRARY BINDINGS: Having got a bri...

KINDS OF LIBRARY BINDINGS: Having got a brief introduction to the processes of binding, lot us discuss the kinds of binding required for the different types of documents in a

Cd-rom networks, CD-ROM Networks CD-ROM has become an important medium...

CD-ROM Networks CD-ROM has become an important medium for the storage and dissemination of information. Many information products are now available on CD-ROM. CD-ROMs represen

What are corals and coral reefs, Question 1: (i) What are corals and c...

Question 1: (i) What are corals and coral reefs? (ii) Illustrate with the help of a diagram the schematic representation of a coral polyp. (iii) Marine tourism is growi

Assigning the class and book number - library classification, Assigning the...

Assigning the Class Number: Once the specific subject is formulated, assigning the correct Class Number can be done with the help of the classification scheme. But this process c

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