Consider a Four Year, Zero-Coupon Bond, with a Yield to Maturity

question 16

Multiple Choice

Consider a four year, zero-coupon bond, with a yield to maturity of 7.2%. What is the duration of the bond?

• A) 4.000
• B) 3.785
• C) 3.614
• D) 3.548

---

Definitions:

Pre-Editing Phase

The initial stage in editing or content creation where material is prepared, adjusted, or organized before the main or final editing process begins.

Decision-Critical Criteria

Key factors or standards considered essential in making a decision or judgment on an issue or option.

Dominance Structuring

The process of organizing or arranging elements, often in a hierarchical manner, to establish or maintain a dominant position.

Elimination By Aspect

A decision-making process where alternatives are systematically rejected based on the absence or presence of certain attributes.