Which of the Following Bonds Has the Longest Duration

question 36

Multiple Choice

Which of the following bonds has the longest duration?

• A)An 8-year maturity, 0% coupon bond
• B)An 8-year maturity, 5% coupon bond
• C)A 10-year maturity, 5% coupon bond
• D)A 10-year maturity, 0% coupon bond

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Definitions:

Patent

A legal right granted to an inventor, providing exclusive commercial rights to an invention for a certain period.

C Corporations

A type of corporate structure where the business is taxed separately from its owners, offering limited liability protection to its shareholders.

Tax Advantages

Financial benefits derived from tax laws, which reduce the tax liability of an individual or business.

Limited-Liability

This is a legal status that prevents a company's shareholders from being personally liable for the company's debts or liabilities beyond their investment in the company.