The Best Security to Achieve Immunisation Is

question 14

Multiple Choice

The best security to achieve immunisation is:

• A)a zero-coupon bond.
• B)a low-coupon bond with maturity that matches an investor's target maturity.
• C)a zero-coupon bond with maturity that matches an investor's target maturity.
• D)a high-coupon bond with maturity that matches an investor's target maturity.

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Definitions:

Steep-Sided Cone

A type of volcanic mountain with steep sides, typically formed from eruptions that deposit large amounts of volcanic material around the vent.

Composite Volcano

A volcano known for its explosive outbursts, made up of alternating strata of ash and lava.

Convergent Boundary

A region where two or more tectonic plates are moving toward each other, often causing one plate to slide beneath the other.

Subduction Zone

A region of the Earth's crust where one tectonic plate moves under another, leading to volcanic activity, earthquakes, and the formation of mountain ranges and oceanic trenches.