Bond portfolios are exposed to interest rate risk

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Reference no: EM131304726

Please answer in complete sentences describe fully in a couple of paragraphs:

Bond portfolios are exposed to interest rate risk and reinvestment risk as described in the text, and it can be immunized against two sources of risk. Please describe how to manage or immunize the risk of a bond portfolio using the concept of DURATION.

Reference no: EM131304726

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