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:

Answer Incorrectly

The act of providing a solution or response that does not accurately address or resolve the question or problem posed.

Environmental Input

External factors or stimuli from the surrounding environment that influence the development or behavior of an organism.

Sensory Register

The part of the information-processing system that stores input from the sensory organs for a fraction of a second, during which time it is either attended to and moved into working memory or lost from the system.

Short-Term Memory

The part of the memory system that is responsible for temporarily holding small amounts of information in mind for a brief period.