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.
Statements: B > C; D > E = F < G ≥ H; C > I = D
Conclusions:
I. B < E
II. G > E
III. I < B
Statements: K ≥ R, M > T, M ≥ R, L = K < O
Conclusion:
I. M > K
II. O > R
In which of the following expression will the expression ‘R > U’ be definitely false?
Statement:
O ≤ P >K ≤ L; W ≤ X = K > R; Q > L
Conclusion:
I) W < L
II) L = W
Statements: Z > X = Y ≥ W; S ≥ I ≤ Q = Z
Conclusions:
I. W < Q
II. S ≥ Y
III. Y < S
In the question, assuming the given statements to be true, find which of the conclusion (s) among given three conclusions is/are definitely true and th...
Statements: D > E ≥ I > G; L = F < H ≤ G; L > J
Conclusions:
I. E > J
II. L ≤ D
III. I ≥ F
Which of the symbol should replace the question mark in the given expression in order to make the expression “M ≥ Q” as well as “O > K” defini...
Which of the following symbols should replace the sign ($) and (*) respectively in the given expression in order to make the expression A ≥ J and P ...
Statements: F > V > W ≥ L > G; F ≤ O = M < I
Conclusions: I. M > L II. V < I
