What Is the Weighted Average Duration of the Assets of the FI

question 27

Multiple Choice

What is the weighted average duration of the assets of the FI?

• A)7.25 years.
• B)7.75 years.
• C)8.25 years.
• D)8.75 years.
• E)9.25 years.
• [Refer to: 9-121]

Recognize the effects of yield changes on bond prices.

Identify and apply different bond immunization and swap strategies in portfolio management.

Analyze the impact of coupon rate, maturity, and yield to maturity on bond duration and price volatility.

Understand how financial institutions manage interest rate risk through duration matching.

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