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Government securities are the most important and unique financial instruments in the financial markets of any economy. Government of India Securities (GOI Sec) include debt obligations of the central government, state governments and other financial institutions owned by central and state governments. As the repayment of principal as well as interest is secured by the government or its guarantee, these instruments are usually referred to as 'Gilt-Edged Securities'. Literally, gilt means gold, and therefore, a gilt-edged security implies 'security of the best quality'. As government securities are loans floated by the government, they become a part of the national debt of the country and the payment of interest on them and also their repayment has a first charge on a nation's purse. Hence, they are absolutely secured financial instruments, guaranting the capital as well as the interest income. Central government securities are considered to be the safest claims amongst stocks of local authorities and industrial debentures, etc. Thus, investors prefer to invest in these securities though the rate of interest is relatively low, when compared to other money market instruments. In the absence of default risk, they are regarded as risk-free investments.
State the impact on profitability of the company Everything you do has an impact on profitability of the company(including drinking ten cups of coffee in a day!). So if you wan
Exchange Rates The prices at which one country's currency can be changed into that of other country. Although perceptions in the currency markets of the privacy of a count
Chu Chu Train Systems is expected to pay a $3.25 annual dividend (D1 = $3.25), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently s
In this exercise you will construct efficient portfolios with 5 risky assets using Excel's non-linear optimization routing "Solver". The questions are designed to be sequential and
Bond valuation would be relatively simple if interest rates exhibit little day-to-day volatility. One could value a bond by discounting each of its cash flows at
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a) Suppose that the real risk-free rate, r*, is 3% and that inflation is assumed to be 7% in Year 1, 5% in Year 2, and 4% after that. Suppose also that all Treasury securities are
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