Start learning 50% faster. Sign in now
● 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.
Consider the following statements about the United Nations Permanent Forum on Indigenous Issues (UNPFII)
Which of the following statements are true in regards to the Young Bengal Movement?
1. Started by Derozio
2. They condemned...
Vishal has certain sum of money with him. He invested 80% of the sum in scheme ‘X’ offering 15% p.a. simple interest for 8 years and received Rs. 33...
Which of the following are correct regarding “PRASHAD scheme”?
I. It was launched by ministry of culture.
...
Which one of the following statements is not correct for Atal Pension Yojana?
The Upanishadas were translated into Persian by
Which of the following are the features of social security?
I. Social security must provide protection again...
In February 2022, which state launched open-air classroom ‘Paray Shikshalaya’?
A train covers a distance of 72 km at the speed of 48 km/h the next 69 km distance covers with a speed of 46 km/h and last 54 km with the speed of 72 km...
The ratio of length to breadth of a rectangle is 8:5. When the length and breadth of the rectangle is increased by 20% and decreased by 50% respectively...