Question 13 1 pts Immunization is a strategy in which bond investors: O attempt

Question

Question 13 1 pts Immunization is a strategy in which bond investors: O attempt to avoid default risk. O attempt to balance reinvestment and price risk. buy only high-quality bonds. attempt to avoid call and convertible risk. Question 14 1 pts ors mitigate the effects o increase by: purchasing bonds with a variety of YTMs purchasing bonds in two maturity groups, long or short purchasing bonds with a variety of maturity dates. purchasing bonds with the same maturity date but with a variety of coupon rates.

Explanation / Answer

13 -

Option C - Attempt to balance reinvestment and price risk.

Interest rate risk is mitigated by adjusting the portfolio duration to the investor's investing time horizon.

14 -

Option C - Purchasing bonds with a variety of maturity dates.

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