________ Protects Against Interest Rate Risk by Buying Bills,notes,and Bonds

question 66

Multiple Choice

________ protects against interest rate risk by buying bills,notes,and bonds that mature in different years.

• A)Bestriding
• B)Laddering
• C)Spanning
• D)Straddling

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Definitions:

Cash Inflow

The total amount of money being transferred into a company, usually from operations, investments, or financing activities.

Residual Value

The estimated value of an asset at the end of its useful life.

Lessor

An entity that leases property or equipment to another party, known as the lessee, under a lease agreement.

Debt-Related Restrictions

These are covenants or conditions included in loan agreements that limit certain actions of the borrower to protect the lender.