A Portfolio of Bonds Is Immunized from Interest Rate Risk

question 43

True/False

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

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Definitions:

Radiographer

A radiographer is a healthcare professional who specializes in taking and interpreting medical images such as X-rays.

Milicurie

A unit of radioactivity equal to one thousandth of a curie, used to measure the amount of radiation emitted by radioactive substances.

Sialography

A diagnostic imaging technique used to visualize and evaluate the salivary glands and ducts for abnormalities, typically involving the injection of a radiopaque dye.

Myelogram

An imaging test that involves injecting contrast dye into the spinal canal to visualize the spine, spinal cord, and nerve roots.