To Reduce the Interest-Rate Risk of Holding a Portfolio of Bonds,Treasury

question 72

True/False

To reduce the interest-rate risk of holding a portfolio of bonds,Treasury bond futures contracts should be bought.

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to unintended harm.

Diversity Of Citizenship

Under the Constitution, a basis for federal district court jurisdiction over a lawsuit between citizens of different states, a foreign country, and citizens of a state or different states or a foreign country and citizens of a state or states. The amount in controversy must be more than $75,000 before a federal court can exercise jurisdiction in such cases.

Federal Law

A body of law created by the federal government of a country, dealing with issues that affect the entire nation.

Treaty

A formal, ratified agreement between two or more sovereign states, usually in written form and governed by international law.