duration matching protects liquidity and solvency by modulating yield shift effects on the value of assets and liabilities
Illya Gerasymchuk
duration matching protects liquidity and solvency by modulating yield shift effects on the value of assets and liabilities
since a 30 year bond discounts 30 years of cashflows and those cashflows directly incorporate this compounding yield - its price moves more with yields than a comparable, shorter time to maturity bond