Kubendran S M is teaching live on Unacademy Plus
SOME VARIANTS OF INFLATION -by S M KUBENDRAN
ABOUT ME - B.E (ECE) from Anna UNIVERSITY Interests : writing stories & poem in Tamil, MOVIES, Listening music, Yoga Loves to Share informative and Motivate people TAKEN CLASSES IN ORGANIZATIONS - RATE ,REVIEW, RECOMMEND Follow me on https://unacademy.com/user/kubendrarn . #KarpathuLAS
TARGET AUDIENCE UPSC in Tamil TNPSC Any Competitive Examination Anyone who wishes to learn new
Debentures or Bond holders and Savers Vs Equity holders Debentures or Bond holders and Savers receive fixed periodical income from their financial assets. The purchasing power of their asset remains intact only if interest rate is more than rate of inflation. For example . Where that the interest rate is 8%The investor can earn Rs. 8 for Rs.100 investment. Suppose, if the rate of inflation is 10% He can buy fewer goods than that of his purchase before inflation with the invested amount.
Indexed bonds The bond issuers gain, the bond holders lose. - The fixed interest rate paid for the bonds are not enough to compensate the effect of inflation. So to avoid this, interest is fixed on the basis of inflation. It means interest vary according to inflation. . If inflation is 10 % the interest rate shall be adequate to compensate this 10%. The interest rate may be 10 % or mor . These types of bonds are called Inflation indexed bonds. - The security holders income depends on the profit of the compa y. In inflationary situation, the companies earn more profit. So, the equity holders also earn more income.
Core Halon 1na intlah . dica fisa in Omd Sies exrcldt In Inoka, was 2000-0 ,
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