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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.
In a certain code language, 'TELEVISION' is written as 'UDMDWKQKMP' and 'PUNISHMENT' is written as 'QTOHTJKGLV'. How will 'HELICOPTER' be written in tha...
BEH, DGJ, (?), EJO, GLQ, INS.
Three Statements are given followed by two conclusions numbered I and II. Assuming the statements to be true, even if they seem to be at variance with c...
If H < T < B = Y and T = V < Z < C, then which of the following conclusions is correct?
Select the set in which the numbers are related in the same way as are the numbers of the following set.
(NOTE : Operations should be performed o...
Statements: All people are tall. Some tall are buildings. No buildings are clocks.
Conclusion I: Some people are buildings.
Conclusion II:...
In a certain code language, ‘FACED’ is written as ‘GZDDE’ and ‘VACAY’ is written as ‘WZDZZ’. How will ‘LABOR’ be written in that lan...
Which diagram correctly represents the relationship of pigeons, birds, dogs?
X # Y means 'X is the brother of Y'
X @ Y means 'X is the daughter of Y'
X & Y means 'X is the husband of Y'
X % Y means 'X is the ...
Six lions N, O, P, Q, R and S are sitting in a straight row, facing north. Only Q sits to the left of R. N sits second to the left of O. S sits second t...