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 is considered a capital transfer in the capital account of the BOP?
Which of the following Schemes/initiatives have played major role in the inclusion of the disadvantaged groups under the formal economic net.
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When should a risk be avoided?
Calculate Rate of Return on Equity shareholders fund:
Calculate the Total Assets to Debt Ratio given the following information:
Non-current Assets: ₹40,00,000
Current Assets: ₹40,00,000
Foreign currency exchange risk in case of Non-Resident (Banks) scheme (FCNB) is borne by?
What is the maximum percentage of investible funds that Category III AIFs can invest in a single portfolio entity?
With reference to the Retail Participation in the Capital Market, consider the following statements:
1. The share of individual investor...
How much did fourteen states and union territories (UTs) raise at the weekly state bond auction, and which state raised the highest amount?
Under the Pradhan Mantri Mudra Yojana (PMMY), collateral-free institutional credit up to _________ is provided by Member Lending Institutions (MLIs).
