Question
you are a financial analyst in a financial institution named, Allin. The CFO of Allin ask you to suggest a low risk bond to offset
you are a financial analyst in a financial institution named, Allin. The CFO of Allin ask you to suggest a low risk bond to offset a single liability that your institution will face at particular point in the future. This need to prevalent among the insitutional investors, although it can also be used by individuals who face an expense of a known amount in the future. This ensure that interest rate risk is eliminated, and the liabilities are pre-funded. Advise the CFO what bond to use and explain the characteristics of the bond that you would suggest
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