You have asked a newly hired intern to review what are considered to be two key features

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You have asked a newly hired intern to review what are considered to be two key features of a cash flow-matching approach to a liability-based mandate for one your clients. The intern identifies the following two features:

Feature 1: It requires no yield curve assumptions.
Feature 2: Cash flows come from coupons and liquidating bond portfolio positions.

Is your intern correct with respect to key features of cash flow matching?

Related Book For answer-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Posted Date: Apr 14, 2023 07:25 AM

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You have asked a newly hired intern to review what are considered to be two key features

Question:

Expert Answer:

Yes the intern is correct Feature 1 is correct because cash flow matching does not requir... View the full answer

Accounting concepts and applications

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