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.
Jagat Singh sold an article for ₹6,000 and incurred a loss. Had be sold it for ₹7,400, his profit would have been 2/3 of the amount of loss that he...
A company produces 5,000 units of a product in a month. The fixed cost is Rs 10,000, and the variable cost per unit is Rs 15. If the company sells each ...
A shopkeeper made a profit of 40% by selling an article for Rs. 280. If he had sold it after allowing a discount of 15% on its selling price, then find ...
A shopkeeper sells a badminton shuttle whose marked price is Rs 15, at a discount of 20% and gives a lollipop costing Rs 2.50 free with each shuttle. Ev...
A sold a car to B at 8% profit, who later sold it back to A at 6% loss. If initially A purchased the car for Rs. 250000, then find the total profit earn...
Profit percentage received on a product when sold for Rs.500 is equal to the percentage loss incurred when the same product is sold for Rs.300. Find the...
An item is initially marked up by 20%, followed by a 10% discount, and sold for Rs. 756. If the goal is to achieve double the pro...
The profit earned after selling an article for Rs.1643 is the same as loss incurred after selling the article for Rs.1121. What is the cost price of the...
A Shopkeeper gives 2 articles free on the purchase of every 10 articles. He also allows a discount of 20% to customer and still earn 25% profit. Find th...
Seema sold a laptop at a profit of 15%. If she had bought it at 10% less and sold it for ₹ 2,200 more, she would have gained 40%. What was the cost pr...
