Floating-rate bonds are designed to minimise which of the following risks?
Floating Rate Bonds (FRBs) are bonds that have a variable coupon, equal to a money market reference rate (like MIBOR or LIBOR) plus a quoted spread (i.e., quoted margin). · Floating rate bonds allow the investor to earn a rate of interest income tied to current interest rates. As such, FRBs carry little interest rate risk. · Its price shows very low sensitivity to changes in market interest rates. When market rates rise, the expected coupons of the FRB increase in line with the increase in forward rates, which means its price remains constant. Thus, FRBs differ from fixed rate bonds, whose prices decline when market rates rise. As FRBs are very less sensitive to interest rate risk, they are considered conservative investments for investors who believe market rates will increase.
I. India's economic A. sector, including IT and software services, has witnessed manufacturing B. growth an...
1. After school, we went home and told our respective parents about the incident.
P. The Principal summoned the teacher.
Q. Not only did t...
Some parts of a sentence have been jumbled up, and labelled P, Q, R and S. Select the option that gives the correct sequence in which these parts can be...
Which of the following is the third sentence of the passage?
Sometimes you lose
P- track of time and
Q- in what you’re doing
R- are completely caught up
Which should be the fourth sentence after rearrangement?
Which of the following is the first sentence after rearrangement of the given paragraph?
Select the option that arranges sentences A, B, C and D in a logical sequence.
A. Her first trip was in 1996 as a third year college student.
...Each question is divided into four parts a,b,c,d. In some questions they are not in the sequence so according to grammar and context re- arran...
Below is given a sentence with an emboldened part. The part may or may not be grammatically correct. The question is followed by three alternatives tha...
