The basic purpose of immunization is to
A. eliminate default risk.
B. produce a zero net-interest-rate risk.
C. offset price and reinvestment risk.
D. eliminate default risk and produce a zero net-interest-rate risk.
E. produce a zero net-interest-rate risk and offset price and reinvestment risk.
E. produce a zero net-interest-rate risk and offset price and reinvestment risk.
When a portfolio is immunized, price risk and reinvestment risk exactly offset each other resulting in zero net-interest-rate risk.
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