__________ Involves Purchasing a Portfolio of Bonds That Produce Cash

question 29

Multiple Choice

__________ involves purchasing a portfolio of bonds that produce cash flows matching closely those cash flows of the underlying liability.

• A) Cash matching
• B) Immunisation
• C) Hedging
• D) none of these choices

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Definitions:

Business-related Debts

Financial obligations incurred in the course of conducting business activities, such as loans, lines of credit, and other forms of borrowing.

Partnerships

A business structure in which two or more individuals manage and operate a business in accordance with terms and objectives set out in a Partnership Agreement.

Establish

To set up or found something on a firm or permanent basis, especially an organization or institution.

Employee Ownership

Employee ownership involves employees holding a stake in the company they work for, often through stock options or an employee stock ownership plan (ESOP).