| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,780,815,125 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Multiperiod Immunization |
0.01 sec. |
|
Multiperiod immunization A portfolio strategy in which a portfolio is created that will be capable of satisfying more than one predetermined future liability regardless of interest rate changes. Multiperiod Immunization An immunization strategy in which one matches the duration of bonds in a portfolio to the duration of one's liabilities. Duration is the number of years until the investor receives the present value of all income from a bond (including interest and principal), and is used to gauge a bond's sensitivity to interest rate changes. A multiperiod immunization strategy is intended to reduce the portfolio's sensitivity to interest rates; that way, the return on the portfolio will enable the holder to pay for his/her liabilities regardless of fluctuations in interest rates. See also: Duration matching strategy. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in |
|---|
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|