Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) Investing in a zero-coupon asset with a maturity equal to the desired investment horizon is one method of immunising against changes in interest rates.
B) Investing in a zero-coupon asset with a maturity equal to the desired investment horizon removes interest rate risk from the investment management process.
C) Buying a fixed-rate asset whose duration is exactly equal to the desired investment horizon immunises against interest
D) Using a fixed-rate bond to immunise a desired investment horizon means that the reinvested coupon payments are not affected by changes in market interest rates.