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

Managerial Economics, Explain the discounting principle. using the discount...

Explain the discounting principle. using the discounting principal calculate the present value of an annuity of five years at rs.500 payments made at the end of each of the next fi

Introduction to quality control, Quality Control If one goes to buy a p...

Quality Control If one goes to buy a product like a refrigerator or a color television or a washing machine, the first thing he would generally do is to have a good look at the

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

Reliability - characteristics of research tools, Reliability: Refers  ...

Reliability: Refers  to  the accuracy  and consistency  of a measuring tool. A measure is reliable when  an  individual remains nearly  the  same  in repeated measurements. Re

Explain what you understand by internal analysis, QUESTION 1 SWOT Matri...

QUESTION 1 SWOT Matrix is one of the principal tools for strategic analysis. Referring to this matrix- (a) Explain what you understand by internal analysis (b) Explain wh

Health and research management, 1.  You will critically review 6 or more sc...

1.  You will critically review 6 or more scholarly articles that inform the reader about your topic. You should have: At least: Two articles that describe the overall issue or

Business process Modeling, Assignment: Model every process (in Microsoft Vi...

Assignment: Model every process (in Microsoft Visio 2010-2013) you identify in this dialogue except when explicitly mentioned that you should not. Project Africa Case Patrick Wiz

Attaching covers and endpapers - binding processes, Attaching Covers: ...

Attaching Covers: Regardless of the sewing method used, the sewn book must be "knocked up"  to be square at head and spine. By hammering along the back edges, the expansion re

State two reasons for establishing a marcom plan, Question: (a) Th...

Question: (a) There are different types of advertising strategies adopted by Organizations in order to increase their sales force. The strongest advertising strategies

Manage crisis situation, The most important test of a new organization come...

The most important test of a new organization comes when it is hit by a major catastrophe. It is required to manage such emergencies intelligently and forthrightly with the news me

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