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.
The International Conference on Glaciers’ Preservation 2025 was held in which country?
When is National Tribal Festival celebrated?
Which of the following countries have become a full time member of SCO (Shanghai Cooperation Organization)?
Which country has recently unveiled a new visa policy to attract foreign investors?
Which of the following is NOT a writ issued by the Supreme Court of India?
According to the Health Ministry’s campaign, which city’s AIIMS was selected for the pilot nutrition awareness project?
Consider the following;
I.All India Survey on Higher Education (AISHE) 2020-2021 is prepared by the Department of School Education and literacy (...
Which fabric is made from purified cellulose derived from wood pulp?
World Health Organization (WHO) recently recommended a new vaccine, R21/Matrix-M, for the prevention of which diesease in children?
How many Advance Pricing Agreements (APAs) did the Central Board of Direct Taxes (CBDT) sign in FY 2023-24?
