So 1 condition of multiple liability immunization is :
- The distribution of duration must have a wide range than distribution of liabilities ( Here, duration has the sense of TIME…which took me awhile to realize)
If we go back to single liability assumption relating to duration:
- Duration of portfolio = time horizon of the liability is due . Is this ‘duration’ meaning also regarding time!? I always treated this part as sensitivity to interest rate … 1% rate change = x % price …
Can someone please confirm if the definition of duration in above two cases are all referring to time? 
then i may need to read it all again to regain concept.
Thanks all
This is one area where the CFA curriculum gets sloppy.
The duration of the assets is modified (or effective) duration: interest-rate price sensitivity.
The duration (that they’re using) of the liabilities is Macaulay duration: PV(CF)-weighted time to payment of cash flows. To convert it to interest-rate price sensitivity you’d need to divide by (1 + YTM) to get modified duration.
The two are (slightly) incompatible, but you have to do what the curriculum tells you. Sorry.
I think it is given in the footnote that the duration of liabilities is Macaulay duration. I’m confused about this part too but going by what the text tells me to do blind-folded (which i hate).