Which of the Following Bonds Has the Longest Duration

question 32

Multiple Choice

Which of the following bonds has the longest duration?

• A)A 15-year maturity, 0% coupon bond.
• B)A 15-year maturity, 9% coupon bond.
• C)A 20-year maturity, 9% coupon bond.
• D)A 20-year maturity, 0% coupon bond.

Recognize the components and importance of a financial plan.

Define financial risk and identify its sources.

Distinguish between the different types of financial plans and their purposes.

Understand the composition of major current assets and liabilities.

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Definitions:

Covert Research

Covert research refers to studies where the subjects are unaware they are being observed or studied, often used in sociology and psychology to observe natural behaviors without the influence of the observer's presence.

Replicate

To duplicate a study or experiment to verify its results.

Peer Reviews

The evaluation of work by one or more people of similar competence to the producers of the work, which constitutes a form of self-regulation by qualified members of a profession within the relevant field.

Scientific Theory

A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experiment.