An Example of an Active Strategy for Bond Management Would

question 119

Multiple Choice

An example of an active strategy for bond management would be

• A) buy and hold.
• B) credit analysis.
• C) indexing.
• D) classical immunization.
• E) horizon matching.

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Definitions:

Primarily Liable

Having the main or first responsibility for a debt or obligation.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee’s name on it.

Valid Defense

A legitimate legal reason presented in a court to counteract or negate allegations made in a lawsuit.

Drawer

In financial contexts, the person who writes or issues a check or draft instructing a bank to pay a specified amount of money to a named party.