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Question 6 2 pts Immunization against liabilities is a set-and-forget strategy. True False Question 7 2 pts A client has a 10.7-year investment horizon. Construct
Question 6 2 pts Immunization against liabilities is a set-and-forget strategy. True False Question 7 2 pts A client has a 10.7-year investment horizon. Construct a portfolio with the following two bonds for this investor to help protect against interest rate risk. What is the weight to put on bond B in this portfolio? Macaulay duration 5.7 12.1 Bond A Bond B Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321. Question 8 2 pts An investor with a 5-year investment horizon put together a bond portfolio with a duration of 6 in years. Is this investor at risk of higher interest rate, lower interest rate, or perfectly hedged against interest rate risk? O At risk of higher interest rate. At risk of lower interest rate Perfectly hedged
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