0
Strategy to derive a specified rate of return regardless of what happens to market interest rates over holding period.
Seeks to offset the opposite changes in bond valuation caused by price effect and reinvestment effect
-price effect: change un bond value caused by interest rate chnages
-reinvestment effect: as coupon payments are received, they are reinvested at higher or lower rates that original coupon rate.
Bond immunization occurs when the average duration of the bond portfolio just equals the investment time horizon
What else can I help you with?
How to find the face value of a bond?
The face value of a bond can be found by looking at the bond certificate or by checking the bond's prospectus. It is the amount that the bond issuer promises to repay to the bondholder when the bond matures.
Is a zero coupon bond a junk bond?
depends on the collateral supporting the bond.
What is a collateral bond?
"What is a collateral bond?"
What are bond agreements?
What are bond agreements?
What is a coupon bearing bond?
A coupon bearing bond is a bond with a flat yield curve. This is a non interest bearing bond. There really would be no sense in purchasing a bond that does not gather any interest.
Vaccination and Immunization?
Vaccination and Immunization
What has the author Michael R Granito written?
Michael R. Granito has written: 'Bond portfolio immunization' -- subject(s): Bonds, Portfolio management
What color is immunization fluid?
The answer depends on the immunization.
Is there an abbreviation for the word immunization?
(IMMUN ) IS THE ACRONYM FOR iMMUNIZATION
When was Immunization Alliance created?
Immunization Alliance was created in 2008.
What is the population of Mollen Immunization Clinics?
Mollen Immunization Clinics's population is 390.
When was Mollen Immunization Clinics created?
Mollen Immunization Clinics was created in 1989.
Where can you go to find out which immunization you need?
You go to the CDC's immunization schedule website.
Polio immunization had little effect on the number of cases of polio-?
Polo was diagnosed in 1789, the immunization is preventive treatment. Once diagnosed with polo the immunization does not help.
What has the author A Elisabeth Sommerfelt written?
A. Elisabeth Sommerfelt has written: 'Childhood immunization' 'Childhood immunization, 1990-1994' -- subject(s): Health surveys, Immunization of children
Why is duration of bond important?
Duration is the weighted average number of years necessary to recover the initial cost of the bond • It allows comparison of effective lives of bonds that differ in maturity, coupon. • It is used in bond management strategies particularly immunization. • Measures bond price sensitivity to interest rate movements, which is very important in any bond analysis Duration is a direct measure of interest rate risk: • The higher the duration, the higher the interest rate risk
Is there an immunization for diphtheria?
Yes.
