Investing in a Zero-Coupon Asset with a Maturity Equal to the Desired

question 17

True/False

Investing in a zero-coupon asset with a maturity equal to the desired investment horizon is one method of immunizing against changes in interest rates.

---

Definitions:

Collective Agreements

Legally binding agreements between employers and a group of employees, often negotiated by unions, setting terms of employment.

Industrial Unions

Unions that organize workers across various trades and industries according to the industry in which they work.

Geographical Area

A specific portion of the Earth’s surface defined by natural or artificial boundaries.

Secession

The act of formally withdrawing from an organization, state, or alliance.