With a Matched Funding Technique, Portfolio Managers Try to Match

question 105

True/False

With a matched funding technique, portfolio managers try to match specific liability obligations due at specific times to a portfolio of bonds that minimize the portfolio's interest rate risk.

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Definitions:

Avoid a Contract

To legally cancel or nullify a contract, effectively acting as though the contract never existed.

Delaying

The act of postponing or putting off actions, decisions, or events to a later time.

Injunction

A legal order by a court that compels a party to do or refrain from specific acts, often used as a remedy in civil cases to prevent irreparable harm.

Employment Contract

A formal agreement between an employer and an employee that outlines the terms of employment, duties, and rights of both parties.