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

Hofstedes dimensions model, what is the relevance of hofstede''s dimensions...

what is the relevance of hofstede''s dimensions model of culture to the tourism and hospitality industry

Describe the communication difficulties that may exist, Question 1 You ...

Question 1 You have been requested by your Superior to deliver a speech to a hundred parents on the importance of a balanced diet for their children. Describe the communication

Acquisition through donations - library administrations, Acquisition Throu...

Acquisition Through Gifts/Donations: Gifts and donations constitute an important source acquisition of reading materials in a library. Many a library has benefited enormously

Prepare a press release, A big multinational company wishes to employ a PR ...

A big multinational company wishes to employ a PR manager for all its PR activities. a) What according to you would be the advantages and disadvantages of having its own PR dep

Six sigma - cynics view, Six Sigma - Cynics view The Six Sigma has take...

Six Sigma - Cynics view The Six Sigma has taken on the life of its own. The cynics might see it as "the next big thing" which will fade as soon as the new buzzword will come al

Shopping, Shopping in terms of Contract Management  Shopping is a term ...

Shopping in terms of Contract Management  Shopping is a term often used in our daily life. In terms of contract management, this term is adapted for procurement of certain spec

Agreement - requirements of resource sharing library network, Agreements ...

Agreements The first agreement, obviously is the agreement to share currently owned materials (that is, to permit access to the holdings among partners), with protocols, limit

Can fca assist in setting up unit-based fees, Q. Can FCA assist in setting ...

Q. Can FCA assist in setting up unit-based fees ("pay-as-youthrow")? Yes. FCA can be a helpful means in developing fair and equitable service fees. It also allows communities i

Project quality management, Overview of Project Quality Management The ...

Overview of Project Quality Management The process of ensuring all project activities, that are necessary to plan, design and implement a project are efficient and effective wi

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