Which of the following explains the extension of cash flow matching for multiple liabilities? Cash flow matching for multiple liabilities is achieved by:
| ||
| ||
| ||
|
The first bond is matched to the last liability, the remaining elements of the liability stream are reduced by the coupon payments of this bond, and another bond is chosen for the next to last liability, adjusted for any coupon payments of the first bond selected. This process is continued until all liabilities have been matched by payments on the securities selected for the portfolio.
Which of the following statements concerning the process of cash flow matching for funding multiple liabilities is TRUE? Find bonds with:
Find bonds with:
| ||
| ||
| ||
|
The process is to find bonds with maturity dates equal to the maturity dates of each liability payment.
The process is to find bonds with maturity dates equal to the maturity dates of each liability payment.
Which strategy for funding multiple liabilities is a combination of multiple liability immunization and cash flow matching?
| ||
| ||
| ||
|
The horizon matching (or combination matching) approach uses a combination of multiple liability immunization and cash flow matching.
The horizon matching (or combination matching) approach uses a combination of multiple liability immunization and cash flow matching.
欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) | Powered by Discuz! 7.2 |