Investing in a zero-coupon asset with a maturity equal to the desired investment horizon is one method of immunizing against changes in interest rates.
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Q31: For given changes in interest rates, the
Q32: The larger the interest rate shock, the
Q33: Setting the duration of the assets higher
Q34: Larger coupon payments on a fixed-income asset
Q35: An FI can immunize its portfolio by
Q37: The smaller the leverage-adjusted duration gap, the
Q38: The duration of a portfolio of assets
Q39: Immunizing the balance sheet of an FI
Q40: Investing in a zero-coupon asset with a
Q41: One method of changing the positive leverage
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