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Assume a flat yield curve, fixed cash flows, and parallel changes in interest rates. Which of the following statements are true regarding immunization strategies? i.

image text in transcribed Assume a flat yield curve, fixed cash flows, and parallel changes in interest rates. Which of the following statements are true regarding immunization strategies? i. If a portfolio satisfies the condition for full immunization, it satisfies the condition for Redington immunization as well. ii. If a portfolio satisfies the condition for Redington immunization, it satisfies the condition for full immunization as well. iii. The Redington immunization strategy works well for any one-time shift in interest rate. iv. The full immunization strategy works well for any one-time shift in interest rate. (i) and (iii) only (ii) and (iii) only (i) and (iv) only (ii) and (iv) only None of the above

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