A Bond Portfolio Is Immunized from Interest Rate Risk If

question 99

True/False

A bond portfolio is immunized from interest rate risk if the modified duration of the portfolio is always equal to the desired investment horizon.

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Definitions:

SAE Grade Rating

A system developed by the Society of Automotive Engineers (SAE) to classify oils and lubricants based on their viscosity characteristics.

Grade 8

A classification of bolts and screws indicating a high level of strength, often used in applications requiring durability and resistance to stress.

MIG Welding

A welding process using a continuously feeding wire and an inert gas to shield the weld from contaminants.

Mild Steel

A type of carbon steel with a low amount of carbon content, making it relatively soft and easy to cut or shape, commonly used in construction and manufacturing.