Duration of a Pure Discount Bond

question 26

Multiple Choice

Duration of a pure discount bond:

• A) is equal to its half-life.
• B) is less than a zero coupon bond.
• C) is equal to the liabilities hedged.
• D) equal to its maturity.

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Definitions:

Organized Patterns

Structured sequences or arrangements of ideas, actions, or events that follow a consistent and recognizable order.

Circular Reactions

Repetitive behaviors in young children that serve to explore their environment and understand cause-and-effect relationships, part of cognitive development.

Representational Ability

Piaget’s term for capacity to store mental images or symbols of objects and events.

Permanence

The state or quality of lasting or remaining unchanged indefinitely.