Why might the matching of the maturity of acoupon bond to the remaining time to maturity of a liability fail to immunize a portfolio?
What will be an ideal response?
Investing in a coupon bond with a yield to maturity equal to the target yield and a maturity equal to the investment horizon does not assure that a portfolio's target accumulated value will be achieved. This is because an increase in the market yield causes the market value to fall and the portfolio can fail to achieve the target accumulated value. This can occur when the fall in principal is greater than any increase in reinvestment rate. In other words the interest rate (or price) risk has a greater impact that the reinvestment risk. To avoid this loss (and immunize its portfolio from interest rate changes), the portfolio manager should look for a coupon bond so that however the market yield changes, the change in the interest on interest will be offset by the change in the price.
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In a short essay, list and discuss the four primary scales of measurement. Include an example of how each scale of measurement is used in marketing research
What will be an ideal response?
A candidate's ability to understand unspoken "rules" of a situation is best represented through what?
A) The candidate's thoroughness in researching the organization B) The candidate's display of personal characteristics like warmth and professionalism C) The candidate's presentation of a professional image D) The candidate's ability to ask meaningful and thoughtful questions E) The candidate's ability to make small talk with strangers at the workplace
A ______ contract is desired when the purchases are expensive and the cost of material/labor to produce the products is uncertain.
A. buyback B. fixed-price C. quantity-flexibility D. cost-plus
How does the “balance doctrine” apply to matters of privacy?
What will be an ideal response?