Question
Which of the following lowers the interest rate risk by
neutralizing the inflation risk?Solution
Capital indexed bonds are a type of government security that are designed to help investors protect against inflation risk. These bonds are long-term debt instruments with interest rates that are indexed to inflation, which means that the interest rate adjusts automatically based on changes in the inflation rate. By linking the interest rate to inflation, capital indexed bonds help to neutralize inflation risk for investors. This means that if the inflation rate increases, the interest rate on the bond will also increase, helping to protect the investor's purchasing power.
Rohan bought a gadget and sold it to Aman at a profit of 30%. If he had purchased it for Rs. 1,500 less and sold it for Rs. 750 more, his profit would h...
A shopkeeper sold a jacket for Rs. 2400 at a loss of 40%. At what price should he have sold the jacket, to earn a profit of 30%?
A vendor bought 1 kg of mangoes at a certain rate and marked them 50% above the cost. He gave a 20% discount to customers and sold only 800 gm instead o...
A person sold a house for Rs. 6,00,000 at a 25% loss. At what price should he sell the house to make a 10% profit?
A shopkeeper gives 2 article free on the purchase of every 7 article he also allows a discount of 10% to customer and still earns 26% profit. Find the r...
- Cost price of article M is Rs.200 less than the cost price of article N. Article N is sold at a loss of 20% and article M is sold at a profit of 25%. On th...
A shopkeeper sold an article after giving a discount of 20% and made a profit of Rs. 60. Find the marked price of the article if cost price of the artic...
A salesman is allowed 32% commission on the total sales by him and a bonus of 3% on the sales over Rs. 15000. If the total earnings of a salesman is Rs....
The cost price of article A and B is Rs. ‘X’ and Rs. (X + 750), respectively. Article A is sold at 20% profit while article B is sold at 10% loss. I...
The cost price of article 'B' is (250/7)% of the selling price of article 'A'. Article 'A' is sold at a 40% profit, and the cost price of article 'A' ex...
Relevant for Exams:
