When the weighted- average duration of an investor's bond portfolio is exactly equal to the investor's desired investment horizon, then the bond portfolio is said to be immunised.
Correct Answer:
Verified
Q4: The relationship between the rate of return
Q19: The risk premium component of a bond's
Q22: According to the expectations hypothesis, if investors
Q47: The price of a bond is equal
Q60: A significant portion of a coupon bond's
Q75: Yield-to-call assumes a bond is called on
Q98: An increase in interest rates has a
Q107: Explain the basic concept of bond duration
Q117: Buying bonds in anticipation of an expected
Q119: Explain the technique and the purpose of
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