All Other Things Equal (YTM = 10%), Which of the Following

question 89

Multiple Choice

All other things equal (YTM = 10%) , which of the following has the shortest duration?

• A) a 30-year bond with a 10% coupon
• B) a 20-year bond with a 9% coupon
• C) a 20-year bond with a 7% coupon
• D) a 10-year zero-coupon bond

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Definitions:

Rationalization

The process of logically justifying behaviors, decisions, or beliefs, often after the fact, to make them appear reasonable or societally acceptable.

Use of Time

Use of Time refers to the ways in which individuals allocate their time across various activities, highlighting the importance of time management and the prioritization of tasks in daily life.

Political Organization

The way in which a society structures its political institutions, processes, and activities, including the distribution of power and the making of decisions.

Rationalization

The process of replacing traditional and emotional thought with reason and practicality, often leading to more efficient and standardized methods of operation.