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a maturity matching strategy for a dedicated bond portfolio entails substantial reinvestment 1 point risk. A solution to avoid reinvestment risk to purchase zero coupon
a maturity matching strategy for a dedicated bond portfolio entails substantial reinvestment 1 point risk. A solution to avoid reinvestment risk to purchase zero coupon bonds that pay a fixed principal at maturity chosen to match a dedicated portfolio's target date a dedicated portfolio is to match its duration to its target date. by following dynamic immunization strategy dedication strategy
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