Questioning Secondary Market Outright Transaction in Government Securities for Minimum & Maximum Yield to Maturity

Vol 15 , Issue 2 , July - December 2014 | Pages: 49-56 | Research Paper

https://doi.org/10.51768/dbr.v15i2.152201415

Published Online: December 12, 2014

Author Details ( * ) denotes Corresponding author

1. * S. Yadav, Associate Professor, Deaprtment of Management, Gitarattan International Business School, India (dr.yadav.31@gmail.com)

Purpose of the current research paper is to know whether investments for long term make higher returns also.
Design/Methodology/Approach: The sample selected for the study is Secondary Market Outright Transaction in Government Securities. The affect of risk element which affects returns to a great extent has been eliminated by selecting Government Securities as a sample for the current study. The researcher has tested the difference in means of the Secondary Market Outright Transactions in Government Securities at Face Value which have been categorized on the basis of number of days of holding as following groups (i) Up to 14 days, (ii) 15-91 days, (iii) 92-182 days, and (iv) 183-364 days.
Analysis of variance was done to know whether there is a significant difference between Yield to Maturity in case of Max. and Min. time periods of Secondary Market Outright Transactions of Government Securities.
Findings: It was found out that time period in case of government securities does not lead to differences in yield to maturity.
Research Limitations/Implications: This research paper has been done only on government securities and can be further extended to cover other financial instruments like mutual funds, equity, bonds, etc.
Practical Implications: The findings have a practical implication for taking investment decisions of risk-averse investors.
Originality/Value: In the domain of financial research, time period consideration for investment decisions holds an important decision making criteria which adds value to the existing research.

Keywords

ANOVA, Government Securities, Investment, Secondary Market Outright Transaction, Yield to Maturity.

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