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

Document accessioning - library management, DOCUMENT ACCESSIONING: All...

DOCUMENT ACCESSIONING: All the books and documents received in the  library are taken into its stock  by a process called Accessioning which involves the assignment of a seria

High standard of ethical behaviour, Problem: ‘Government officials resp...

Problem: ‘Government officials respond to incentives and disincentives. They are unlikely to undertake policies that are generally unpopular or that will lose them powerful sup

Information transfer processes, Information Transfer Processes: This s...

Information Transfer Processes: This section is intended to take note of (a) the information transfer process among the users of information on the subject; (b) the informatio

Environment and natural resource management, discuss merits and demerits of...

discuss merits and demerits of common property regimes and open access property regimes

Relationship between values and organisation culture, Question: A stron...

Question: A strong and positive culture helps develop the consensus needed for organisations to cope well with changing environments. (a) Describe what is meant by organisat

Basic materials handling principles, Basic  Materials Handling Principles ...

Basic  Materials Handling Principles 1.  Lest Handling  is Best Handling: it is  best to keep  the handling  cost of the  minimum  because  handling  does not add value  to

Ordering procedure - periodicals procurement, Ordering Procedure: We h...

Ordering Procedure: We have discussed the procedure until the selection is finalised and the lists and the cards are forwarded to  the Procurement Section for placing orders.

Explanation of public relations, Problem Explain the key tools availabl...

Problem Explain the key tools available to carry out the public relations function. Explanation of Public relations Developing Media Relations Launching Media Tours

Introduce a new product and make a new oraganization, how will i make a pro...

how will i make a project related to introducing a new product and making a new organization .. also i have to tell about my target ? i choose to introduce glases for blind people

Selection and packaging - value-added information services, Selection and P...

Selection and Packaging: Added value is often claimed for information services on the grounds that they bring together, in a convenient form, items of information which would

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