To reduce the duration of a bond portfolio, managers often use
A) shares of common stock
B) hard asset investments
C) preferred stock shares
D) treasury bills

Question

Quizplus · Accepted Answer

Treasury bills are short-term debt instruments, and using them in a bond portfolio can reduce the overall duration, as they mature quickly and are less sensitive to interest rate changes compared to longer-term bonds.

To Reduce the Duration of a Bond Portfolio, Managers Often