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● Statement 1 is correct: The twin factors that affect a bond's price are inflation and changing interest rates. A rise in either interest rates or the inflation rate will tend to cause bond prices to drop. Inflation and interest rates behave similarly to bond yields, moving in the opposite direction from bond prices. In short, inflation makes interest rates go up. This in turn makes bond values go down. Exception- A Bond with a fixed coupon rate will hold the same interest rate, no matter what happens in the market. ● Statement 2 is correct: Unlike stocks, the principal value of a bond is returned to the investor in full at maturity. This can make bonds attractive to risk-averse investors who are concerned about losing their capital. Although bonds are often viewed as a capital preservation tool, they also offer opportunities for capital appreciation.
How many types of justice, liberty, equality and fraternity in that same order have been mentioned in the preamble of the constitution of India?
Where was the second annual session of the Indian National Congress held?
Which of the following features of the Indian Government system are the essential features of the parliamentary Government system?
1. Presence ...
When will Anant Ambani start his term as Executive Director of Reliance Industries Ltd?
Who was appointed as the ‘Global Goodwill Ambassador’ for UN Environment ?
Consider the following statements in regards to Jal Shakti Abhiyan:
1. Jal Shakti Abhiyan-I launched in 2020
2. National Water Mission is ...
Web-based management tool called Dam Health and Rehabilitation Monitoring Application (DHARMA) developed by ___________________ .
What is the value of X in the following table?
Which one of the following Islands, is known as ‘rice bowl’ of Japan?
Which of the following works were authored by Dr. Sarvepalli Radhakrishnan?