The FI's Portfolio Is Immunised When the Weighted-Average Duration of the Bond

question 15

True/False

The FI's portfolio is immunised when the weighted-average duration of the bond portfolio exactly equals the FI's desired investment horizon.

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Definitions:

Workload

The amount of work assigned to or expected from a person within a specific time frame.

Child Care

The care and supervision of children, typically from infancy through elementary age, by someone other than the child's legal guardians.

Equality Of Power

The ideal or principle that all individuals or groups should have the same amount of power and influence within a society or in specific contexts.

Leisure Time

Free time not taken up by work, chores, or other obligatory activities, allowing for relaxation or pursuit of personal interests.