22. Immunization (LO4, CFA7) Consider two dedicated bond portfolios, both with the same 10-year target dates. One is managed using a buy-and-hold strategy with reinvested coupons.

The other is managed using a dynamic immunization strategy. The buy-and-hold portfolio is most likely to outperform the immunized portfolio under what kind of interest rate environment?

a. Steadily rising interest rates.

b. Steadily falling interest rates.

c. Constant interest rates.

d. Performance will be the same under any environment.