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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.
If A : B = 8:5 and A is 21 more than B then find the sum of A and B.
Three numbers are in ratio 3:5:6. If the sum of the squares of those three numbers is 280 then find the sum of the three numbers.
Marks scored by A and B in a test are in the ratio 13:8 respectively. If B had scored 4 more marks, then marks scored by A would be 30% more than that o...
Two numbers are in the ratio 7:4. After adding 2 and 6 to them respectively the ratio becomes 2:3. Find the bigger number.
What is the fourth proportional to 189, 273 and 153?
If the mean proportion between 98 and 8 is denoted by 'k', then determine the ratio of (k + 4) to (k - 8).
What is the fourth proportional to 2, 5, 12?
A sum of money is divided among P, Q, R and S in the ratio of 3:4:8:9 respectively. If the share of R's is Rs. 2600 more than the share of Q, then what ...
The cost of diamond varies directly as the square of its weight. A diamond broke into four pieces with weights in the ratio 3 : 4 : 5 : 6. if the loss i...
Ratio of males to females in village ‘A’ and village ‘B’ is 9:10 and 17:18, respectively and number of females in village ‘B’ is 25% more th...