Multiple Choice
A bond investor has $100,000 and has determined 5 years is his maximum term. He puts $20,000 in one-year bonds, $20,000 in two-year bonds, etc. up to $20,000 in five-year bonds. This is an example of:
A) a barbell strategy.
B) a laddering strategy.
C) an immunization strategy.
D) a term management strategy.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: A bond strategy that attempts to immunize
Q3: During periods of economic expansion, the spread
Q4: Interest rate risk is composed of:<br>A) market
Q5: Immunization is a strategy in which bond
Q6: A portfolio is said to be immunized
Q7: The units of measure for modified duration
Q8: For a bond, Macaulay duration represents the
Q9: Bond investors expecting interest rates to rise
Q10: Under the ladder approach, bond investors purchase
Q11: Which of the following would not be