Given Its Time to Maturity, the Duration of a Zero-Coupon

question 16

Multiple Choice

Given its time to maturity, the duration of a zero-coupon bond is ________.

• A) higher when the discount rate is higher
• B) higher when the discount rate is lower
• C) lowest when the discount rate is equal to the risk-free rate
• D) the same regardless of the discount rate

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Definitions:

Maturational Crisis

A crisis that occurs as a result of reaching a new developmental stage in life, often requiring an individual to acquire new coping mechanisms to adapt effectively.

Reactive Crisis

A crisis that emerges in response to an unanticipated event, causing stress or disruption in one's life or organization.

Adventitious Crisis

A crisis resulting from unexpected external stressors or traumatic events, not predicted as part of normal life.

Triage Nurse

A specialized nurse responsible for assessing patients on arrival to determine their need for urgent care based on the severity of their condition.