In a duration-matched portfolio, the present value of the assets must exceed the present value of the associated liabilities.

Name: In a duration-matched portfolio, the present value of the assets must exceed the present value of the associated liabilities.
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In a duration-matched portfolio, the focus is on matching the duration of assets to the duration of liabilities to hedge against interest rate risk, not necessarily on the present values of assets exceeding those of liabilities.

In a Duration-Matched Portfolio, the Present Value of the Assets