Reading 25 Book 4 curriculum EOC # 27 - contingent claim ris
Hi All,
Question 27 on page 155 asks for the risks that the manager should be concerned about.
The manager’s immunization approach involves only non-callable bonds. Yet the manager is concerned about contingent claim risk according to the solution provided in the curriculum.
I am not clear as to why the manager should continue to worry about contingent claim risk if he is only holding non-callable bonds.
Your response is much appreciated.
PS |