Suppose you are a bond portfolio manager and you expect interest rates to increase. You will_________ your duration by_________ long- term maturity bonds if you want to manage your risk.
A) increase; buying
B) decrease; selling
C) decrease; buying
D) increase; selling
Correct Answer:
Verified
Q1: In the immunisation process:
A) DGAP is not
Q2: When we will calculate the change in
Q4: The average convexity of a dumbbell portfolio:
A)
Q5: Modified duration is calculated as:
A) duration multiply
Q6: Which of the following statements is correct?
A)
Q7: When we improve the accuracy of the
Q8: The sensitivity of the security price to
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
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents