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.
In the following question, a word is represented by only one set of numbers as given in anyone of the alternatives. The sets of numbers given in the alt...
The columns and rows of Matrix I are numbered from 0 to 4 and that of Matrix II are numbered from 5 to 9. A letter from these matrices can be represente...
A word is represented by only one set of numbers as given in any one of the alternatives. The sets of numbers given in the alternatives are represented ...
A word is represented by only one set of numbers as given in any one of the alternatives. The sets of numbers given in the alternatives are represented ...
A word is represented by only one set of numbers as given in any one of the alternatives. These sets of numbers given in the alternatives are represent...
A word is represented by only one set of numbers as given in any one of the alternatives. The sets of numbers given in the alternatives are represented ...
