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:

Synovial Membrane

A specialized connective tissue that lines the inner surface of capsules of synovial joints, secreting synovial fluid for lubrication.

Connective Tissues

Specialized tissues that support, bind together, or separate other tissues and organs in the body.

Skeletal Muscle

A type of striated muscle tissue which is attached to bones and is responsible for voluntary movements in the body.

Propionibacterium Acnes

A type of bacteria primarily involved in the development of acne, by infecting skin pores and hair follicles.