BOND IMMUNIZATION WHEN SHORT-TERM INTEREST RATES FLUCTUATE MORE THAN LONG-TERM RATES.

This article provides research and financial analysis in regards to bond immunization when short-term interest rates fluctuate at a more rapid pace compared to long-term interest rates. The purpose of this article is to decipher the equation for duration which will produce immunization for a stochastic process in which short-term rates vary in comparison to long-term rates. A process like this can be captured by an additive reciprocal term dependent shift. The formula for this algorithm is included.