Immunisation can best be described as:
A)the ability of investors to choose a bond investment that minimises reinvestment risk.
B)the ability of investors to choose a bond investment that minimises interest rate risk.
C)the ability of investors to choose a bond investment that matches cash inflows with outflows.
D)the ability of investors to choose a bond investment that achieves some future target regardless of changes to interest rates.

Question

Quizplus · Accepted Answer

Immunisation refers to a strategy in bond investment where the goal is to make the investment's value insensitive to changes in interest rates, thus achieving a specific financial target regardless of interest rate fluctuations.

Immunisation Can Best Be Described As