In an example of topic “How to immunize a liability or liability stream” we have been thought that if we do DA=DL we are immunized that is even if interest rate changes it does not affect us. However in question no. 5 page no. 218 we have constructed the portfolio doing Da=Dl after that interest rate has changed in part 3 as thought above even interest rate changes we are immunized then why have we calculated Da again and said not immunized as Da is not equal to Dl. .
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There was an assumption on this concept that there us only a one time immediate change in interest rate. If interest rate keep on changing then D wont be able to save us.
There must be a self note dicatated by sir on it. Check your notes.
Further the fiqures given in part(iii) is conceptually wrong as:- Int Rate rises, Duration falls but in question it has increased.
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