Insulating a portfolio from the effects of interest rate changes is known as:
A) immunisation.
B) gapping.
C) sterilisation.
D) duration.
Correct Answer:
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Q9: The objective of the corporate risk manager
Q10: Convexity increases as:
A) the market yield falls.
B)
Q11: The duration of a coupon bond_ at
Q12: The weighted average of the squares of
Q13: Kirkwood and Idil (2009) noted that, prior
Q15: Duration_ as the yield _.
A) increases; increases
B)
Q16: The sensitivity of a bond's price to
Q17: As the term of the security increases,
Q18: 'Duration' refers to:
A) the period of time
Q19: The convexity (CX) of a ZCB is
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