You Had Created a Bond Portfolio Last Year That Had

question 84

Multiple Choice

You had created a bond portfolio last year that had a portfolio duration of 12 years, which was your target date. Today, you revise your portfolio such that it now has a duration of 11 years. You are following a strategy known as

• A) Portfolio matching
• B) Maturity reduction
• C) Dynamic immunization
• D) Yield reduction
• E) Call protection

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Definitions:

Tundra

(tundra) A treeless biome between the boreal forest in the south and the polar ice cap in the north that consists of boggy plains covered by lichens and small plants. Also called arctic tundra. Compare with alpine tundra.

Temperate Desert

A type of desert found in temperate climates, characterized by relatively low temperatures compared to tropical deserts.

Climax Community

The final, stable community in succession that remains relatively unchanged until disrupted by an event like fire or human interference.

Forest Communities

Ecosystems composed of trees and other plant species, along with associated animals, microorganisms, and the physical environment, interacting as a unit.