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Course 104: Immunization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Protection from Changing Interest Rates | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Immunization can protect you from changes in interest rates, which can affect the prices and reinvestment rates of bonds. In order to immunize, investors match the duration of their bond investments and their investment time horizon--the time when they will need the cash from the investment. Finding bond duration information is as simple as asking your broker or doing a little online research. Next: The Quiz >> |
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Learn how to invest like a pro with Morningstar’s Investment Workbooks (John Wiley & Sons, 2004, 2005), available at online bookstores. | ||
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