Recommendations & StrategiesPregunta 64 de 110
A bond ladder strategy is designed primarily to accomplish which of the following?
a.Concentrate all maturities in a single long-dated bond
b.Maximize speculative short-term trading gains
c.Spread maturities over time to manage interest rate and reinvestment risk
d.Eliminate all credit risk from a portfolio
Explicación
A bond ladder staggers maturities across several dates so that portions of the portfolio mature and can be reinvested at regular intervals. This smooths reinvestment risk and reduces sensitivity to any single interest rate environment. It also provides periodic liquidity without concentrating maturity risk.
Practica las 110 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- A step-up in cost basis at death generally means which of the following for inherited appreciated securities?
- An efficient frontier graph plots portfolios according to which two dimensions?
- A client in a high tax bracket seeking tax-advantaged income would most likely benefit from which of the following?
- Which statement about a 529 college savings plan is accurate?
- An investor holds a portfolio of 30 stocks across many industries. Which risk remains that cannot be diversified away?
- A required minimum distribution (RMD) generally applies to which type of account?
Última revisión: · proceso editorial
Equipo Editorial de PrepPass · Verificado con NASAA Series 65 Investment Adviser Law Exam · Cómo revisamos