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Q. What is the basic Approach of the financial management ?
1) The first approach view finance as to providing the funds needed by a business on the most suitable terms. This approach confines finance to the raising of funds and to the study of the financial instauration and instrument where the funds can be procured
2) The seconds approach related to the finance to the cash
3) The third approach view finance as a being concern with the raising the funds and their effective utilization
Corporation finance: Broadly speaking business finance can be defined as the process of rising of all money funds to be used in the overall enterprises According to the wheeler: business finance is that business activity which is concerned with the acquisition and conservation of the funds is the meeting finance need and overall objective of business enterprises.
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Now that we have an understanding about price volatility characteristics of a bond, let us turn to the duration/convexity approach, which is an alternative
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