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.
Adani Group’s hydrogen blending project is based in which Indian city?
Consider the following statements about the NPCI's global initiatives:
I. NPCI's collaboration with Namibia aims to replicate the UPI system.
...Which Union minister recently inaugurated Sealdah metro station in West Bengal?
According to the RBI’s guidelines on the establishment of Digital Banking Units (DBUs), the products and services to be provided at a DBU include?
SIDBI has partnered with ___________ to connect the informal rural microenterprises with the formal financial sector to help them digitise their busines...
Who was named the Player of the Year for 2023 in the men’s category at the sixth annual Hockey India Awards?
Which edition of the World Sustainable Development Summit took place at the India Habitat Centre, New Delhi this year?
Which company is producing its first original Indian animated series, "Mighty Little Bheem," based on the popular character Chhota Bheem?
What award did Tamil writer Sivashankari win for her contributions to literature recently?
In case of a tie between two contestants in general elections who has the authority to break the tie?
