What Is the Duration of a 5-Year Par Value Zero

question 40

Multiple Choice

What is the duration of a 5-year par value zero coupon bond yielding 10 percent annually?

• A)0.50 years.
• B)2.00 years.
• C)4.40 years.
• D)5.00 years.
• E)4.05 years.

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Definitions:

Dermatome

Body segment corresponding to a segment of the spinal cord.

Spinal Segment

A section of the spinal cord defined by the pair of spinal nerves that emerge from it, responsible for specific sets of motor and sensory functions.

Body's Surface

The external part of the body exposed to the environment, including skin, which serves as a protective barrier and plays roles in sensation and temperature regulation.

Prefrontal Cortex

A region of the frontal lobe of the brain implicated in a variety of complex behaviors, including planning, decision making, and moderating social behaviour.