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  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 9: Interest Rate Risk II
  5. Question
    Using a Fixed-Rate Bond to Immunize a Desired Investment Horizon
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Using a Fixed-Rate Bond to Immunize a Desired Investment Horizon

Question 20

Question 20

True/False

Using a fixed-rate bond to immunize a desired investment horizon means that the reinvested coupon payments are not affected by changes in market interest rates.

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