related indirectly and insignificantly to the immunization risk inherent in a bond portfolio. The main goal of this study is … interest rate risk management. This article presents empirical test of duration and convexity of Zero-Coupon Bonds( ZCBs )at …

. Seemingly, markets have been demanding more stocks instead of bonds. Yet, instead of observing higher bond rates, paradoxically …, bond rates have been persistently negative after the Lehman-Brothers collapse. To explain this paradox, we suggest that, in …, this rise in perceived market fragility alone can explain the drop in both bond rates and price-dividend ratios observed …

tradeoff between market and reinvestment risk explains this pattern. Intuitively, while long-term dividend claims are highly … exposed to market risk, they are also good hedges for reinvestment risk because dividend prices rise as expected returns … decline, and longer-term claims are more sensitive to discount rates. In the estimated ICAPM, reinvestment risk dominates at …