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:

Lumbar Spine

The lower part of the spine that is composed of five vertebral bones, known for bearing the majority of the body's weight and for its flexibility.

Kyphosis

Exaggeration of the posterior curvature of the thoracic spine.

Thoracic Spine

The portion of the spine located in the upper and middle back, consisting of twelve vertebrae.

Vertebral Rotation

The twisting movement of the vertebrae around the spinal axis, often discussed in the context of spinal deformities or injuries.