A Zero-Coupon Bond Has a Par Value of $1,000 and Matures

question 20

Multiple Choice

A zero-coupon bond has a par value of $1,000 and matures in 4.5 years.The yield to maturity is 6.4 percent.What is the Macaulay duration?

• A)3.67 years
• B)3.81 years
• C)3.92 years
• D)4.26 years
• E)4.50 years

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Definitions:

Room

A defined space within a building or structure intended for occupancy or specific activities.

Color Constancy

The perceptual phenomenon where the color of an object appears the same under varying lighting conditions.

Perceived Color

The characteristic of visual perception that is described through color categories and experiences, which can vary widely among individuals.

Surrounding Objects

The items and physical environment that encircle or are in the proximity of an individual, impacting their experience and behavior.