Using a Fixed-Rate Bond to Immunize a Desired Investment Horizon

question 20

True/False

Using a fixed-rate bond to immunize a desired investment horizon means that the reinvested coupon payments are not affected by changes in market interest rates.

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Definitions:

Real Estate Sales Agreement

A legally binding contract between a buyer and a seller outlining the terms and conditions of the sale of real property.

Legal Description

A precise way of describing a piece of land in legal documents.

Contingent

Dependent on certain conditions or events which must occur before an agreement or commitment is fulfilled.

Temporary Insurance

Short-term insurance coverage provided to an individual or entity until a permanent insurance policy is issued.