Target date immunization would primarily be of interest to ________.
A) banks
B) mutual funds
C) pension funds
D) individual investors

Question

Quizplus · Accepted Answer

Target date immunization is a strategy used by pension funds to match the cash flow requirements of their liabilities. It involves investing in a combination of fixed-income securities and interest rate derivatives such as swaps, options, and futures. This strategy helps pension funds to immunize against interest rate risk and inflation risk, ensuring that they can meet their payment obligations regardless of changes in the interest rate environment.

Target Date Immunization Would Primarily Be of Interest to ________