Floating-rate bonds are designed to minimise which of the following risks?
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.
Which of the following statement is Incorrect regarding RERA 2016?
The Treaty of Yandaboo was signed between the British and _____________
When did India join the Global Partnership on AI?
Two cars start from a place with a speed of 70 km/hr at an interval of 15 minutes. What is the speed of a man coming from the opposite direction towards...
Consider the following statements: India had plan holiday during 1966-69 due to
1. Indo-Pakistan conflict in 1965.
2. Severe drought fo...
Telnet is a ......... based computer protocol
When Akbar besieged the Fort of Chitoor, who among the following defended it for four months?
Who became Brand Ambassador of “Star Sports” ?
In a family of 8, the men eat on average 50 kg of food and women eat on an average 35 kg of food. The men and women are equal in number. A woman joined ...
Which one of the following statements is correct?
A device driver of output devices