Which of the Following Bonds Has the Longest Duration

question 17

Multiple Choice

Which of the following bonds has the longest duration?

• A)five-year coupon bond
• B)five-year,zero-coupon bond
• C)ten-year coupon bond
• D)ten-year,zero-coupon bond

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Definitions:

Horizontal Mergers

Horizontal mergers are business consolidations that occur between companies operating in the same industry, often resulting in a stronger competitive entity.

Conglomerates

Large corporations that consist of diverse companies or divisions operating in various industries or sectors, usually as a result of mergers or acquisitions.

Antitrust Enforcement

Government actions aimed at promoting competition among businesses by preventing monopolies, cartels, and other practices that restrict free trade.

Blurred Distinction

A situation where the clear differentiation between two concepts, categories, or objects becomes vague or ambiguous.