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:

Slander

A form of defamation expressed in spoken words, gestures or other transitory means, causing harm to a person’s reputation.

Libel

A published false statement that is damaging to a person's reputation; a written form of defamation.

Defamation

The act of damaging someone's reputation by making false and harmful statements about them, either through slander (spoken) or libel (written).

Editorial

An article in a publication expressing the opinion of its editors or publishers.