James Wants to Invest in Bonds and Has a 10

question 23

Multiple Choice

James wants to invest in bonds and has a 10 year investment horizon.To immunize his portfolio,he must buy bonds with durations of ________ 10 years.These bonds will have maturities ________ 10 years.

• A)greater than; less than
• B)equal to; less than
• C)less than; equal to
• D)equal to; greater than

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Definitions:

Encouraging Taxation

A concept aimed at promoting efficient and effective tax policies that support economic growth and fair wealth distribution.

Social Justice

The concept aiming for equal access to wealth, opportunities, and privileges within a society.

Personal Freedoms

The rights and liberties that protect the individual from excessive government control and allow for freedoms of speech, religion, and expression among others.

Local Taxes

Taxes imposed by local government entities, such as municipalities or counties, including property taxes, sales taxes, and income taxes at the local level.