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

Principles and practices of Management , Mr. Vincent, the Manager of a larg...

Mr. Vincent, the Manager of a large supermarket, was taking a management course in theevening programme at the local college. The Professor had given an interesting but disturbingl

Explain the essential training required for all your staff, Question: Y...

Question: You have been appointed as the Estate Manager of La Gaulette Integrated Resort. The project has just started and you have been appointed during the construction phas

Briefly discuss the motivations behind this trend, QUESTION 1 (i) Discu...

QUESTION 1 (i) Discuss the key activities of the strategic management process'. Explain why it is important for managers to recognise the interdependent nature of these activit

Social structures as a management tool, S ocial structures as a management...

S ocial structures as a management tool An understanding of the type of social structure which can take the responsibility of nurturing the learning, developing the competenci

Define a code of ethics, QUESTION You are given the task to draft a Co...

QUESTION You are given the task to draft a Code of Ethics for your organization (a) Define a Code of Ethics (b) What are the different aspects/issues that you might incl

P chart, P Chart As against the      and R charts which deal with quan...

P Chart As against the      and R charts which deal with quantitative aspects, these charts deal with the attributes which are qualitative factors possessed by the data. An ex

Assignment, role of managerial economist

role of managerial economist

Cumulative index work and loose issue shelving work, Cumulative Index Work:...

Cumulative Index Work: As the name suggests, it pertains to noting by entering down the announcement of cumulative index followed by entering  the receipt of cumulative index

Negotiations , Negotiations  One of the most important activities perfo...

Negotiations  One of the most important activities performed by the supply managers is to negotiate agreements or contracts with the suppliers. Although supply management is de

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