Which of the following statements best describes immunization?

A. Creating a portfolio that minimizes the uncertainty of the portfolio's maturity target date value

B. Building a portfolio in a way that maximizes its total return while minimizing risk.

C. Creating a portfolio that has the lowest possible reinvestment risk

D. Building a portfolio that has minimal interest rate risk

What type of yield is the asked yield on a Treasury bill?

A. Zero coupon yield

End of exam

B. Discount yield

C. Bid-ask yield

D. Bond equivalent yield

The discount rate is the interest rate the Federal Reserve charges on loans to

A. foreign governments.

B. consumers on credit card loans.

C. commercial banks.

D. large businesses customers