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Bond portfolio immunization techniques balance ________ and ________ risk. price; reinvestment price; liquidity credit; reinvestment credit; liquidity

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Answer:

The correct option is (A) price; reinvestment

Step-by-step explanation:

The bond immunizatio refers to a strategy i.e. related to the investment that used for lowering the rate of interest and the risk of the bond via adjusting the time period of the portfolio for matching out with the investor time period of the investment.

In the case when there is a fall in the rate of interest so the immunzation would defines the appreciation of the price that compensatin the risk reinvestment

Hence, the correct option is (A) price; reinvestment

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