A more direct form of immunization is dedication, or cash-flow matching. If portfolio cash flows are perfectly
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A more direct form of immunization is dedication, or cash-flow matching. If portfolio cash flows are perfectly matched to those of projected liabilities, rebalancing will be unnecessary. But dedication imposes a large number of constraints on bond choice, and in many cases may not be feasible. P-963
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ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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