Given the Time to Maturity,the Duration of a Zero-Coupon Bond

question 44

Multiple Choice

Given the time to maturity,the duration of a zero-coupon bond is higher when the discount rate is

• A)higher.
• B)lower.
• C)equal to the risk free rate.
• D)The bond's duration is independent of the discount rate.
• E)none of the above.

---

Definitions:

Mitochondria

An organelle within the cytoplasm of the cell.

Spindle Fibers

Microtubules that form part of the mitotic spindle during cell division, aiding in the separation of chromosomes.

Edema

A condition characterized by an excess of watery fluid accumulating in the cavities or tissues of the body.

Inflamed

A condition characterized by redness, swelling, and often pain in a part of the body, typically as a reaction to injury or infection.