You want to invest in a bond portfolio that you will use


You want to invest in a bond portfolio that you will use later to payoff a liability due in 7 years. Which of the following bond portfolios would immunize you from interest rate risk.

A) Zero coupon bonds with 7 years to maturity

B) A portfolio of bonds with a duration of 7 years

C) A portfolio of bonds with an average 7 years to maturity

D) A and B

E) A and C

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Financial Management: You want to invest in a bond portfolio that you will use
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