What is a path-dependent cash flow security?
What will be an ideal response?
For some fixed-income securities and derivative instruments, the periodic cash flows are path dependent. This means that the cash flows received in one period are determined not only by the current and future interest-rate levels but also by the path that interest rates took to get to the current level.
Business
You might also like to view...
All of the following gains from investments are taxed as ordinary income except
A) coupon payments. B) interest. C) short-term capital gains. D) long-term capital gains.
Business
Quality circles are comprised of employees who are involuntarily assigned to various groups
Indicate whether the statement is true or false.
Business