Question: For two bonds with equal coupons, duration would be higher for the bond with the shortest maturity. A. True B. False Immunization protects the portfolio

For two bonds with equal coupons, duration would be higher for the bond with the shortest maturity.

A. True
B. False

Immunization protects the portfolio value against upward movement in interest rates but not downward movement in interest rates.

A. True
B. False

One of the benefits of zero-coupon bonds is that they lock in a compound rate of return (or reinvestment rate) for the life of the bond, if held to maturity.

A. True
B. False

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