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.
The committee set on to redefine the company’s goals, despite facing numerous challenges
In the following question, a sentence is given with a phrase or idiom highlighted in bold. Select the option given below that can replace the highlight...
The local fishermen have obligated to the Jetpur-Porbandar pipeline on the ground that the effluents would degrade the sea and kill fishes and marin...
Select the alternative that will improve the bold part of the sentence in case there is no improvement select “No improvement”.
If I had b...
Speaker of the Lok Sabha said that unlike the House was in order he would not allow a discussion.
A statement has been given with three words in bold. There are three answer choices given below, one or more of which may act as replacement to the or...
Is this the same book like our teacher recommended?
For several decades, successful governments in Karnataka have attempted to make it necessitates for students to learn Kannada as a subject.
...We should respecting everyone privacy ,no matter how close we are to them.
From time immemorial, spiritual
seeker have wrestling in gain control over the mind that is necessary for realisation, but which easily...
