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Personal Financial Planning
14. CHAPTER 12A: FIXED-INCOME SECURITIES/Traditional Methods of Immunizing Bond Portfolios
14. CHAPTER 12A: FIXED-INCOME SECURITIES Illustration
Syllabus Slides

Traditional Methods of Immunizing Bond Portfolios

01.Core Concepts

• Ladder strategy • Portfolio of bonds with staggered maturities • Barbell strategy • Half of portfolio is invested in short-term bonds, and the other half in long-term bonds • Bullet strategy • Purchasing a series of bonds with similar maturities, focused around a single point in time