QUESTION 17 In classical immunization, a. portfolio duration is set to be equal to investment horizon b. portfolio duration is set to be greater than investment horizon O portfolio duration is set to be shorter than investment horizon Od characteristics of the bonds that are held in the portfolio are coordinated with the e none of the above options is correct. QUESTION 18 For a bond investor selecting a long-term buy-and-hold strategy, which of the following wou O a. Term to maturity b. Indenture provisions Oc Coupon levels d. Liquidity e. Credit rating QUESTION 10 Chia Sow to wonder wall N 2 3 4 5 W E R A S D T orizon ent horizon ent horizon ortfolio are coordinated with those of the liabilities the investor is obligated to pay strategy, which of the following would be the least important consideration? All Antonella ca R . 4 5 6 & 7 8 9 R T Y U QUESTION 19 A substation pickup swap involves swapping out of a a bond to realize capital losses, into a comparable bond. b. low coupon bond, into a comparable high coupon bond. Oc high coupon bond, into a comparable low coupon bond Od bond that is underpriced into a comparable bond that is overpriced. De bond that is overpriced into a comparable bond that is underpriced QUESTION 20 Which one of the following strategies could be a corpus bond management strategy? 2.75% of the portfolio is located to an equity index and the balance to a bond index 1.75% of the portfolio is located to a bondine and sales nequity index c. 75% of the portfolio is located to a bond index, and the ice to actively managed bond sector 4.79% of the portfolio is located to actively managed tond sections and the balance to a bond index None of the shove 2 3 S 4 5 co Q W E R T T A S D F G