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Author Question: The practical application of bond portfolio immunization to investors is that immunization (Read 62 times)

Rafic Kaaki

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on: Mar 29, 2022

Question 1

The mathematical link between a bond's price and interest rate changes is the
◦ Macaulay duration.
◦ modified duration.
◦ yield to market.
◦ yield-to-call.

Question 2

The practical application of bond portfolio immunization to investors is that immunization
◦ allows aggressive traders to eliminate the price effects caused by interest rate changes.
◦ allows investors to derive a specified rate of return from bond investments for a given investment horizon.
◦ eliminates the possibility of losing money due to a company defaulting on its bond payments.
◦ allows investors to passively manage their bond portfolio once it is initially immunized.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by Rafic Kaaki on Mar 29, 2022

msgero

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Rafic Kaaki

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Reply 2 on: Mar 29, 2022
Thanks for the timely response, appreciate it

Missbam101

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Reply 3 on: Yesterday
Excellent

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