Question
Which of the following risk can reduce the value of a
bond or other fixed rate investments?Solution
Interest rate risk is the risk that the financial value of assets or liabilities (or inflows/outflows) will be altered because of fluctuations in interest rates. For example, the risk that future investment may have to be made at lower rates and future borrowings at higher rates. In case of bonds, the value of the bonds can reduce due to increase in interest rates as the price of bond and interest rates are inversely related.
In July 2024, which economic indicator was recorded as the lowest in the last 59 months?
What is the maximum subsidy for ZED-certified MSMEs under the handholding support? Â
What is the maximum assistance provided for Infrastructure Development under MSE-CDP? Â
A company has Rs.500,000 of debt outstanding with a coupon rate of 10%. The yield to maturity on these bonds is 15%. If the rate of tax is 40%, what is...
What is the primary purpose of financial regulations?
The implementation of prudential norms on BASEL III capital framework for AIFIs shall be from April 01, 2022 except for ____, for which the implementati...
Normal Loss is generally determined as a % of which among the following?
Dividends earned on the investments in shares represents a part of an income. To which of the following categories of income, does it belong to?
An option that can be exercised only at expiration is called ____
