[Verse 1] When future payments loom ahead, your portfolio needs a shield Interest rates can twist and turn, making bond values wheel Duration matching holds the key, a fortress you can build Align your assets to the clock when obligations must be filled [Chorus] Duration matching, immunization Lock your timeline, stop the variation When rates climb up, your bonds fall down But matching duration keeps you sound Duration matching, immunization Future payments, no frustration [Verse 2] Macaulay measures weighted time, each cash flow has its place Modified duration shows the swing when interest rates give chase Calculate your liability's beat, then match it bond by bond Duration gaps spell danger zones where losses could abscond [Chorus] Duration matching, immunization Lock your timeline, stop the variation When rates climb up, your bonds fall down But matching duration keeps you sound Duration matching, immunization Future payments, no frustration [Bridge] Convexity adds the second twist Price curves bend, they can't resist Rebalance when the gap grows wide Keep duration matched, side by side Present value stays on track When your durations echo back [Verse 3] Pension funds and insurance firms, they live this every day Promise payments years from now, come sunshine or come gray Dedicated portfolios with duration locked in tight Immunized against the swings that keep treasurers up at night [Chorus] Duration matching, immunization Lock your timeline, stop the variation When rates climb up, your bonds fall down But matching duration keeps you sound Duration matching, immunization Future payments, no frustration [Outro] Match the duration, win the game Interest risk won't stake its claim
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