This is my collection, please correct me if I’m wrong.
1, Immunization target rate of return = current immunized rate of return = current market interest rate.
* Immunization rate = YTM of the portfolio (2011 mock exam, Q31) * Immunization target rate of return is NOT YTM (Volume 4, page 32, example 8)
2, Safety net return = required rate of return (2011 mock exam, Q31) 3, Cushion spread 4, Dollar safety margin 5, The yield is BEY, if not specified.
Please add more if I miss anything. Thanks.