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1. Investing in a zero-coupon asset with a maturity equal to the desired investment horizon removes interest rate risk from the investment management process.

True

False

2. Immunizing the balance sheet of an FI against interest rate risk requires that the leverage adjusted duration gap (DA-kDL) should be set to zero.

True

False

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92800016

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