Describe the effectiveness of duration as a tool in hedging bonds

What will be an ideal response?


Duration is good, but not perfect. Duration changes as bond prices change and it assumes all YTM shift in concert. This assumption is false.

Business

You might also like to view...

To develop long-term partnerships, sellers should try to get every concession possible out of their buyers.

Answer the following statement true (T) or false (F)

Business

A lawyer who fails to file a document with the court on time, causing the client's case to be dismissed, is liable for legal malpractice.

Answer the following statement true (T) or false (F)

Business

Which of the following about using compensation and communication as part of effective multi-channel marketing is FALSE?

A. Different channels must have policies that offer consistent reinforcement for the channel strategy. B. Information exchange can help channel members understand the logic behind the channel strategy. C. Channel members may sabotage new channel strategies if they do not ‘buy into the changes. D. The 3 Cs model of business strategy (customers, costs, competitors) is the basis for channel design. E. Multi-channel marketing will invite conflict, and compensation and communication can go a long ways towards solving that problem.

Business

The concept of an inclusive workplace synthesizes into a cohesive framework what we've learned so far about diversity in organizations, expectations of business responsibility to the community, and developments on the ______.

a. global scene b. anti-discrimination arena c. employees’ sentiments about diversity d. human capital scene

Business