Question: I chose option 4 and was marked wrong. What is the correct answer and why? Which of the following formulations is required for a bullet

I chose option 4 and was marked wrong.
What is the correct answer and why? Which of the following formulations is required for a bullet immunization?
1)Duration of bond portfolio is set equal to the desired investment period
2)Duration of bank assets is set equal to the duration of liabilities
3)Duration of rate-sensitive assets is set equal to the duration of rate-sensitive liabilities
4)None of the above

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