The immunization of a portfolio against interest rate risk means that the portfolio will neither gain nor lose value when interest rates change.
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Q18: Duration is related to maturity in a
Q19: The difference between the changes in the
Q20: Duration of a zero coupon bond is
Q21: Using a fixed-rate bond to immunize a
Q22: Deep discount bonds are semi-annual fixed-rate coupon
Q24: Perfect matching of the maturities of the
Q25: For a given maturity fixed-income asset, duration
Q26: Buying a fixed-rate asset whose duration is
Q27: Matching the maturities of assets and liabilities
Q28: Immunization of a FIs net worth requires
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