Friday, September 25, 1998
Break-even analysis aids in judging risk
It is well known that all fixed-income securities like corporate bonds, PSU bonds, financial institutions' bonds and government securities are subject to interest-rate risk. The income from fixed-income coupon bearing securities accrues in two ways: interest payment at regular intervals plus income form reinvestment of coupons and repayment of principal at the end of the maturity period, usually done at par.
Million-dollar query
The revolutionary changes in the telecommunications sector has given birth to a million-dollar question. Would the Internet usurp the business of long- distance telecom carriers, or is it likely to be just a perennial irritant, like the ingenious call-back method?
The IMF frowns
India's fiscal deficit, says the IMF, cannot be sustained at the current high level without a heavy cost to its long-term economic prospects. The proposition will be accepted without demur. The question is the time frame in which the fiscal deficit can be brought down.
|
|
