Q a schweser self test 07 fixed income portfolio management answers

... bond has a longer duration With a normal upward-sloping yield curve, a flattening could also occur with long-term rates falling more than short- term rates However, the barbell and bullet strategies...Explanation A barbell strategy exploits a flattening of the yield curve The barbell invests in both a short-term and a long-term bond When the yield curve flattens, characterized in this case... the ultimate bullet and has no immunization risk The more the portfolio shifts towards a barbell structure the more immunization risk is created The barbell approach can be used if the duration