The Bond Management Strategy Intended to Eliminate Interest Rate Risk

question 52

True/False

The bond management strategy intended to eliminate interest rate risk is immunization.

---

Definitions:

Financial Markets

Platforms where individuals, companies, and governments can trade financial securities, commodities, and other fungible assets.

Financialization

The increasing dominance of financial markets, financial motives, financial institutions, and financial elites in the economy, overshadowing traditional industrial capital.

Global Integration

refers to the process of interconnecting economies, cultures, and regulatory systems across the world, leading to increased interaction and coordination on a global scale.

Free Trade Agreements

International treaties between countries that reduce or eliminate trade barriers, such as tariffs and import quotas, to encourage trade and economic cooperation.