Question
For two bonds with equal coupons, duration would be higher for the bond with the shortest maturity. A. True B. False Immunization protects the portfolio
For two bonds with equal coupons, duration would be higher for the bond with the shortest maturity.
- A. True
- B. False
Immunization protects the portfolio value against upward movement in interest rates but not downward movement in interest rates.
- A. True
- B. False
One of the benefits of zero-coupon bonds is that they lock in a compound rate of return (or reinvestment rate) for the life of the bond, if held to maturity.
- A. True
- B. False
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
