Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
91-Day T-Bills
Starting from July, 1965, 91-day T-bills were issued at a discount rate ranging from 2.5-4.6 percent per annum. Till July, 1974, the discount rate was 4.6 percent. Even later, the discount rate hovered around the same. The extremely low yield on these bills was totally out of alignment with the other interest rates in the system. Moreover, the Central Bank readily rediscounted these bills due to which the yield for these bills remained more or less artificial. The banks used these instruments to park their funds for a very short period of 1-2 days. This resulted in violent fluctuations of volumes of outstanding T-bills. The RBI had introduced two measures in order to cope with the situation. Firstly, to recycle the T-bills (from October, 1986) under which the bills are rediscounted by the RBI and are resold to the banks. Secondly, an additional early rediscounting fee was imposed, if the banks rediscounted the T-bills within 14 days of purchase. Although this resulted in a decline in weekly fluctuations, the T-bills market did not become an integral part of the money market and the interest rates did not rise considerably as the bulk of T-bills continued to be held by the RBI. The weekly auctions of 91-day T-bills were started in January 1993, which in due course resulted in gradual decline of the T-bills outstanding with the RBI.
The annual report and accounts for Astra Zeneca plc and Epistem Holdings plc and other relevant financial information are available in the ‘TMA 02 Resources folder' in the Assessme
Day count convention is a system used to determine the number of days between two coupon dates. It is important in calculating accrued interest and present value
Q. What do you signify by Investment Decisions? Investment Decision: - The most significant function of financial management isn't only the procurement of external funds for th
Spreads The difference between two futures price is referred to as ‘spread'. For the same underlying good, if there are two different prices on two different expiration dates, t
What does an investment banker do when underwriting a new security issue for a corporation? While underwriting a new security issue an investment banker buys it and after that re
Part 1: Contingency plan Create contingency plans for the following scenarios: > One of your highly qualified consultants has given three months notice and is planning to move to a
Identification the management risk: The first and most essential aspect of risk management is recognising what events may occur within a business. It is only when all the poss
Q. Define the finance function? Is it a risk-return trade off? What is the basic role of a modern financial manager? What is the basic importance of finance function in the mana
MONOPOLY Several governments consider it necessary to prevent or control monopolies. A untainted monopoly exists when one organisation controls the production or supply of a go
The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd