Managers can achieve the results of duration matching by using these to hedge interest rate risk.
A)Rate sensitive assets.
B)Rate sensitive liabilities.
C)Coupon bonds.
D)Consol bonds.
E)Derivatives.

Question

Quizplus · Accepted Answer

Derivatives, such as futures, options, and swaps, are financial instruments specifically designed to hedge against interest rate risk, allowing managers to achieve the results of duration matching by adjusting the sensitivity of their portfolios to interest rate changes.

Managers Can Achieve the Results of Duration Matching by Using