Chapter 8 Terms Flashcards

1
Q

Accommodates Bonds With Embedded Options

A

Effective Duration

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2
Q

Ladder Strategy

A

Establishing portfolio of bonds with staggering maturities

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3
Q

Barbell Strategy

A

One half of portfolio is shorter-term bonds, and the other half is longer term

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4
Q

Bullet Strategy

A

Purchasing a portfolio of bonds with similar maturities

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5
Q
A
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