Introduction to Finance

20 Immunisation

About this lesson
Learn the essential technique of immunization to protect your assets from changes in maturity. This video demonstrates how immunization works by calculating the impact of a yield to maturity shift on a firm's net asset value. We walk through a practical example, showing how to invest in zero-coupon bonds to offset potential losses and maintain financial stability. Discover the two key conditions required for successful immunization and understand why it's a dynamic strategy that needs regular rebalancing. Subscribe to @AxiomTutoringCourses for more financial insights.
Walkthrough

Follow the reasoning, step by step.

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