Question: How does the passive strategy for bond investment work? What is the main disadvantage of this strategy? Describe the maturity matching strategy of investing in

How does the passive strategy for bond investment work? What is the main disadvantage of this strategy?

Describe the maturity matching strategy of investing in bonds. Give an example. Why is this strategy considered conservative?

Explain why prices of risky bonds may decline when economic conditions weaken.

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1 Passive Strategy for Bond Investment The passive strategy for bond investment involves purchasing a diversified portfolio of bonds and holding them for the long term without attempting to actively t... View full answer

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