Question: 11. Explain the principle of immunization when used with a bond portfolio. a.What is bond portfolio immunization attempting to achieve? b. How is bond portfolio

11. Explain the principle of immunization when used with a bond portfolio.

a.What is bond portfolio immunization attempting to achieve?

b. How is bond portfolio immunization achieved?

c.Which bond risk components interact to make immunization successful?

i. Explain how these bond risk components interact to immunize a bond portfolio.

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