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.
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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.
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