When reducing interest rate risk, why is duration matching superior to maturity matching?
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When reducing interest rate risk, why is duration matching superior to maturity matching?
MaturityMaturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Maturity matching only eliminates price risk in ...View the full answer
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Related Book For 
Financial Institutions, Markets and Money
ISBN: 978-1119330363
12th edition
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
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