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

Conditions for adopting force account, Conditions for adopting force accoun...

Conditions for adopting force account  List of the situation where you can utilise force account is mentioned below:  Works are small or in remote locations where mobilis

Derive and explain the capital market line, QUESTION (a) Derive and exp...

QUESTION (a) Derive and explain the Capital Market Line. Make and state all necessary assumptions (b) Explain clearly how you would test for- (i) the size effect (ii)

Vertical and horizontal integration strategies, QUESTION (a) Comment o...

QUESTION (a) Comment on the generic competitive strategies as proposed by Porter with the use of suitable examples (b) Briefly elaborate, with relevant examples, your unders

Population - definition and concepts, Population is the entire aggregatio...

Population is the entire aggregation of  cases that meet the designated set of criteria. It  includes a complete set of persons or objects that possess same characteristics that

Organisation - library management, Organisation: In an open access lib...

Organisation: In an open access library which allows users to browse, choose and select books of their interest, shelf organisation and arrangement of books are of primary imp

Explain what the term preventive legal management address, Question 1: ...

Question 1: (a) Explain what the term "preventive legal management" addresses. (b) Describe any 5 stakeholders that have a legal relationship within the hospitality indust

Describe the term ‘industrial accident'', Question 1: (a) Describe the ...

Question 1: (a) Describe the term ‘industrial accident'. (b) What are the characteristics of industrial accidents? Question 2: Occupational Injury will be defined as

Risk classification based on where risk control lies, R i sk classificati...

R i sk classification based on where risk control lies From the point of view of where risk control lies, five classifications of risk can be listed: External risks wh

Input to quality control process, Input to Quality Control Process The ...

Input to Quality Control Process The inputs to quality control are: Project management plan: this consists of the quality management plan which helps to control quality.

What is logistics, Question 1 What is logistics? Explain the six key phase...

Question 1 What is logistics? Explain the six key phases in the evolution of a logistic organization Question 2 Explain the "Quantity Count Methods" Question 3 Briefly e

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