The Duration of a 5-Year Zero-Coupon Bond Is

question 10

Multiple Choice

The duration of a 5-year zero-coupon bond is

• A) smaller than 5.
• B) larger than 5.
• C) equal to 5.
• D) equal to that of a 5-year 10% coupon bond.
• E) None of the options are correct.

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Definitions:

Left

A direction or side that is opposite to right, often associated with the left side of the body or objects.

Abdominopelvic Cavity

An anatomical space in the human body that houses both the abdominal and pelvic organs, including the stomach, liver, and bladder.

Parietal Peritoneum

The outer layer of the peritoneum that lines the abdominal and pelvic cavities, not directly in contact with the organs.

Retroperitoneal

Referring to organs located behind the peritoneum, the serous membrane lining the abdominal cavity and covering the abdominal organs.