What Is the Duration of a Zero-Coupon Bond with Five

question 191

Multiple Choice

What is the duration of a zero-coupon bond with five years to maturity that is currently priced at $980 and has an interest rate of 8%?

• A) 4.86 years
• B) 2.5 years
• C) 10 years
• D) 5 years
• E) Cannot be determined with the information provided.

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Definitions:

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Global and Local Advantages

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