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During times of economic boom, interest rates are usually lower. In cases where an investor has bought a bond at the prevailing low interest rate and after a year or so the market interest rates rise, he cannot exit the bond and invest in the newer higher returns instrument. He would have to hold the low coupon paying bond till maturity.
Floating rate notes are an easy alternative wherein, the payments made out by the notes issuer is going to be in line the prevailing market interest rates.
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What are the floating rate instruments?
A Floating rate instrument is one in which the rate of returns on the invested amount might vary from time to time. It is not fixed.
Which exchange rate is following by India?
Floating Exchange Rate
What is floating rate bond?
A floating rate note (FRN) is a bond whose coupon (interest) goes up and down with market rates.
If the supply and demand for currency determines the exchange rates this is called?
floating
Fiscal and monetary policies under managed floating exchange rate regime?
Fiscal and monetary policies under managed floating exchange rate regimes?
What are the floating rate instruments?
A Floating rate instrument is one in which the rate of returns on the invested amount might vary from time to time. It is not fixed.
What is the symbol for Pioneer Floating Rate Trust in the NYSE?
The symbol for Pioneer Floating Rate Trust in the NYSE is: PHD.
What is the difference between a fixed rate bond and a floating rate bond?
"A fixed rate bond is a bond that has a fixed rate, whereas a floating rate bond can change due to different variables. BNET is a great business resource that will help with learning about fixed and floating rate bonds."
Home loan interest rates?
home loan Interest Rate is ------ 10.25% Floating Rate of SBI 11.00% Flat Rate of HDFC 10.50% Floating Rate of HDFC
In what year did Pioneer Floating Rate Trust - PHD - have its IPO?
Pioneer Floating Rate Trust (PHD)had its IPO in 2004.
Which exchange rate is following by India?
Floating Exchange Rate
What are capital market instruments?
Capital market instruments Capital market instruments are those instruments which are not facilitate the transfer of capital in the financial markets (!). Let's start with a basic definition of capital markets. A capital market is where people (individuals, corporations, governments)lend or borrow money.To faciliate an example, we ask: how do lenders decide who should borrow from them? The markets have evolved uniform instruments to help lenders in the capital markets make investment decisions.One example of these uniform instruments is a fixed rate bond. A fixed rate bond allows a company/government to borrow money for a fixed period of time while paying a fixed interest rate on that borrowed money. In the capital markets, the uniformity of fixed rate bonds faciliate the transfer of capital from lender to borrower.Other examples of capital market instruments include equity, floating rate bonds, convertible bonds, asset backed securities, mortgage backed securities, and interest rate swaps.
What bankers do?
Bankers obtain deposits from customers at a low rate and then invest the customers deposit in higher yield debt and equity instruments. The spread (difference) between the two rates is 3-4%
What is the symbol for PennantPark Floating Rate Capital Ltd in NASDAQ?
The symbol for PennantPark Floating Rate Capital Ltd. in NASDAQ is: PFLT.
What is the symbol for Nuveen Floating Rate Income Fund in the NYSE?
The symbol for Nuveen Floating Rate Income Fund in the NYSE is: JFR.
In what year did PennantPark Floating Rate Capital Ltd - PFLT - have its IPO?
PennantPark Floating Rate Capital Ltd. (PFLT) had its IPO in 2011.
In what year did Nuveen Floating Rate Income Fund - JFR - have its IPO?
Nuveen Floating Rate Income Fund (JFR)had its IPO in 2004.
