Multiple Choice
Immunization is the process of ________ to ensure an outcome.
A) measuring bond price sensitivity to interest rates
B) tying all investment decisions to a particular market interest rate
C) tying all investment decisions to a duration period
D) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Duration is:<br>A)positively correlated with interest rates and
Q2: One of the problems with duration is
Q3: Duration is influenced by everything except:<br>A)maturity.<br>B)market rate
Q4: In general, duration is the number of
Q6: A zero-coupon bond has a duration equal
Q7: Immunization is the process of measuring bond
Q8: Duration times the reinvestment rate will give
Q9: Under terminal wealth analysis, the greater the
Q10: Terminal wealth analysis for a zero-coupon bond
Q11: Duration analysis is subject to the assumption