Components of interest rate risk


Assignment:

Q1. What are the two components of interest rate risk?

Q2. Why do zero-coupon bonds that match the holding period eliminate interest rate risk?

Q3. What is duration?

Q4. How is duration used to immunize debt portfolios?

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Operation Management: Components of interest rate risk
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