Start learning 50% faster. Sign in now
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.
Ravi drives from city X to city Y at a speed of 40 km/h and returns at a speed of 60 km/h. What is his average speed for the whole journey?
The speeds of Car 'A' and Car 'B' are 25 km/hr and 45 km/hr, respectively. If Car 'A' covers a distance that is 36 km shorter tha...
Abhinav improved his average travel speed by 8 km/h after journeying for 5 hours, completing his trip in a total of 8 hours. If instead he had boosted h...
A car running with a speed of ‘x’ m/sec makes 5 rounds of a circular field having radius 42 metres, in 10 seconds. Find the time taken by car to cov...
Amit walks for 2 hours at a speed of 's' km/hr, and then his speed increases by 25 km/hr, covering the remaining distance in 3 hours. If Amit's speed ha...
A person has to travel a distance of 30 km. He finds that he has covered 5/6 of the distance in 3 hours and 20 minutes. what is his speed in km/h?
Average speed of ‘A’ during a 30-hour journey is 34 km/h. If he covered the first 180 km of his journey at a speed of 20 km/h, then find the speed a...
A man travels a certain distance at 12 km/h and returns to the starting point at 9 km/h. The total time taken by him for the entire journey 2 (1/3) hour...
'A' and 'B' are running on a circular track of length 4000 metres. 'A' is running clockwise at 8 m/s while 'B' is running anti-clockwise at 10 m/s. Find...
A can complete a piece of work in 12 days, and B can complete the same work in 16 days. They work together for 4 days, and then A leaves. How many more ...