A Bond Portfolio Is Immunized from Interest Rate Risk If

question 99

True/False

A bond portfolio is immunized from interest rate risk if the modified duration of the portfolio is always equal to the desired investment horizon.

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Definitions:

Immunizing

The process of making an individual immune to a disease, typically by vaccination, to reduce their susceptibility to specific infectious diseases.

Bike Helmets

Safety gear worn to protect the head during bicycle riding, preventing or reducing head injuries in the event of a fall or collision.

Child Maltreatment

Any act by a caregiver that results in harm or a threat of harm to a child, including physical, emotional, or sexual abuse, as well as neglect.

Perpetrators

Individuals who commit acts of harm, violence, or abuse towards others, often within contexts of criminal behavior or interpersonal conflicts.