Some of the Problems with Immunization Are

Multiple Choice

Some of the problems with immunization are

A) duration assumes that the yield curve is flat.
B) duration assumes that if shifts in the yield curve occur, these shifts are parallel.
C) immunization is valid for one interest-rate change only.
D) durations and horizon dates change by the same amounts with the passage of time.
E) immunization is valid for one interest-rate change only, duration assumes that the yield curve is flat, and that if shifts in the yield curve occur, these shifts are parallel.