A Bond Strategy Attempting to Immunize the Portfolio from Interest

question 10

Multiple Choice

A bond strategy attempting to immunize the portfolio from interest rate risk is based on the concept of:

• A)buy and hold.
• B)horizon.
• C)duration.
• D)indexing.

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Definitions:

Opening

An available or unoccupied space or opportunity.

Blood Vessels

Tubular structures carrying blood through the tissues and organs; a network of arteries, veins, and capillaries.

Ligaments

Tough, fibrous bands of tissue that connect bones to each other, providing stability to joints.

NSAIDs

Non-Steroidal Anti-Inflammatory Drugs, a class of medications that reduce pain, decrease fever, prevent blood clots, and, in higher doses, decrease inflammation.