The Duration of a 15-Year Zero-Coupon Bond Is

question 60

Multiple Choice

The duration of a 15-year zero-coupon bond is

• A)smaller than 15.
• B)larger than 15.
• C)equal to 15.
• D)equal to that of a 15-year 10% coupon bond.
• E)None of the options

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Definitions:

Atlas And Axis

The first two cervical vertebrae that support the skull and enable head movements such as nodding and rotation.

Pivoting

The action of rotating around a single point or axis, often used to describe movements in sports, dance, or mechanics.

Thoracic Cage

The bony framework of the chest, consisting of the ribs, sternum, and part of the spinal column, protecting vital organs and supporting respiration.

Axial Skeleton

The segment of the skeletal system that is made up of the head and trunk bones, encompassing the skull, spine, ribs, and sternum.