You Have a Cash Outflow to Make at the End

question 13

Multiple Choice

You have a cash outflow to make at the end of year 4. You can invest in zero coupon bonds maturing in year 3 and in year 8. To immunize the portfolio, the proportion in the 3 year bonds would be

• A) .8.
• B) .2.
• C) .6.
• D) .4.

---

Definitions:

Internet Switching Units

Devices used in networking to connect and route data packets between different segments of the internet or other network environments.

Pacific Ring of Fire

An area in the basin of the Pacific Ocean where a large number of earthquakes and volcanic eruptions occur in a horseshoe shape.

Composite Volcanoes

Volcanoes characterized by explosive eruptions, steep slopes, and composition of alternating layers of lava and ash.

Drains the Volcano

The process by which magma, gases, or fluids are released from the volcano, reducing pressure within the magma chamber.