The investments officer for Sillistine Savings is concerned about interest rate risk lowering the value of the institutions bonds A check of the bond portfolio reveals an average duration of 4 5 years How could this bond portfolio be altered in order to minimize interest rate risk within the next y...

Sillistines bond portfolio has an average duratio ...

The investments officer for Sillistine Savings is concerned about interest rate risk lowering the value of the

Question:

The investments officer for Sillistine Savings is concerned about interest rate risk lowering the value of the institution’s bonds. A check of the bond reveals an average duration of 4.5 years. How could this bond be altered in order to minimize interest rate risk within the next year?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...