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

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

Development of the quality standards, The Development of the Quality Standa...

The Development of the Quality Standards Quality  standards  evolved  with  quality  management  movement  which gained  importance  after  the  Second  World  War.  The  contr

Staff activity area of library building -library management, Staff Activity...

Staff Activity Area of library building -library management Main activities carried out by the professional staff of the library are: Acquisition, Technical Processing (catalo

Explain the relationship between treasury and alm, Question 1 Suppose you ...

Question 1 Suppose you are the CEO of MS Bank Corporation. Your bank is facing interest rate risk which has affected its operation significantly. Explain the factors that influenc

Selection tools - non-print materials, SELECTION TOOLS: NON-PRINT MATERIALS...

SELECTION TOOLS: NON-PRINT MATERIALS The production and distribution of non-print materials, is a recent development and therefore not as well organised as in the ease of prin

Patent and standards and specifications, Patents  Patents are  an impo...

Patents  Patents are  an important source of information. Various primary and secondary journals publish information regarding current patents in specific subject fields. Offi

Explain four different types of organizational structure, QUESTION 1 An...

QUESTION 1 An organization structure is the organization framework by which job tasks are divided grouped and coordinated (a) Explain the four different types of organizatio

Write advantages and disadvantages of structuring a deal, Question 1 What ...

Question 1 What do you understand by entrepreneurial finance? Explain the role of external investors in a firm Question 2 Elaborate the steps under pro forma analysis. Dis

Selection procedure - library management, Selection Procedure: There c...

Selection Procedure: There can be two sets of operations in the selection of periodicals: those relating to continuing titles, and those relating to new titles. i) Continuing

Organisational framework for project management, Organisational Framework f...

Organisational Framework for Project Management A project based organisation is a composition that facilitates the coordination and implementation of project behaviours. Projec

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