What Is the Duration of This Treasury Note

question 67

Multiple Choice

What is the duration of this Treasury note?

• A)1.500 years.
• B)1.371 years.
• C)1.443 years.
• D)2.882 years.
• E)1.234 years. [Refer to: 9-95]

---

Definitions:

Paid-In Capital

Paid-in capital is the amount of money investors have contributed to a company in exchange for equity.

Retained Earnings

The portion of net income not distributed to shareholders and instead reinvested in the company or used to pay off debt.

Common Stock

A type of security that represents ownership in a corporation, with voting rights and potential for dividends.

Stated Value

A value assigned to no-par value stock by the board of directors of a company and used for accounting purposes.