A Company Invests $1,000 in a Five-Year Zero-Coupon Bond and $4,000

question 4

Multiple Choice

A company invests $1,000 in a five-year zero-coupon bond and $4,000 in a ten-year zero-coupon bond.What is the duration of the portfolio?

• A) 6 years
• B) 7 years
• C) 8 years
• D) 9 years

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Definitions:

Category Extension

The practice of expanding a brand or product line into new categories or markets, leveraging existing brand equity to introduce new offerings.

Co-branding

A partnership between two or more brands to create a product or service that leverages the strength of each brand's identity.

Line Extension

A strategy where a company expands its existing product line into new variations or flavors to meet different customer needs or to capture a wider market.

Recoup Investment

The process of regaining the money that has been spent on an investment, usually via profits generated from the investment.