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Start learning 50% faster. Sign in nowFloating 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.
Bhutia dance is performed in which of the following states?
The principle policy of the state is taken from the constitution of which country?
Who was conferred with the Banker's Bank of the Year Award 2022?
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‘The Story of My Experiments with Truth’ was written by:
Where is the headquarters of Coalition for Disaster Resilient Infrastructure (CDRI)?
As per the National Family and Health Survey (NFHS), 5th report the number of women were more than the number of men, what was the number o...
In which state the Gir Forest National Park is located?
The ‘Tripartite struggle’ was between Gurjara Pratiharas in North India, Palas in Eastern India and ________ in South India.
Which is the highest waterfall of the world on land?