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.

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Definitions:

Supportive

Providing assistance, encouragement, or emotional help to others in a way that promotes a positive environment or outcome.

Corrective

Designed to correct or rectify an error, fault, or undesirable outcome, often through specific interventions or adjustments.

Feedback

Information provided about reactions to a product, a person's performance of a task, etc., used as a basis for improvement.

Feedback Timely

Relates to the promptness with which feedback is delivered, ensuring that it is given in a time frame that is relevant and useful for the recipient.