Which of the Following Bonds Has the Longest Duration

question 50

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
• E) Cannot tell from the information given

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Definitions:

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various means.

Irrigation Systems

Networks of tubes, pumps, and canals used to transport water to agricultural crops to enhance growth when rainfall is not sufficient.

Power Generators

Machines or devices that transform various forms of energy into electrical power.