Identification -Ch'in

question 81

Short Answer

Identification
-Ch'in

---

Definitions:

Interest-Rate Risk

The possibility of incurring losses in investments as a result of variations in interest rates, especially impacting fixed-income securities.

Coupon

The interest rate paid by a bond, usually expressed as a percentage of the bond's face value.

Cash Flow Matching

A form of immunization, matching cash flows from a bond portfolio with those of an obligation.

Immunization

A strategy in fixed income investing that aims to make a portfolio's duration and interest rate risk match its liability obligations.