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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.
Who is from Kolkata?
Four of the following five are alike in a certain way and hence form a group. Who among the following one who does not belong to that group?
What will come in place of question mark (?) in the expression B + C @ D &E ? F, if it indicates D is father-in-law of F?
If ‘F’ is related to “Hindustan Times’ and ‘H’ is related to ‘Punjab Kesari’ in a certain way based on t...
Who is third to the left of S?
Who among the following sits second to the left of L?
What is the sum of present age of P and the one who is third to the right of P?
Which of the following statement is true?
I) E sits second to the left of the one who uses Lenovo
II) C sits immediate right of A
III) A uses Microsoft
If E is related to H and G is related to F in a certain way, then who among the following person is related to A?
Which of the following statement are true?
I. H likes brown
II. A sits opposite to C
III. The one who likes Black sits immediate le...
