Which of the Following Bonds Has the Longest Duration

question 50

Multiple Choice

Which of the following bonds has the longest duration?

• A) An 8-year maturity, 0% coupon bond
• B) An 8-year maturity, 5% coupon bond
• C) A 10-year maturity, 5% coupon bond
• D) A 10-year maturity, 0% coupon bond
• E) Cannot tell from the information given

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Definitions:

Psychology

The systematic examination of mental processes and actions, covering both the observable and the hidden aspects of consciousness and thinking.

Causation

The relationship between cause and effect, where one event (the cause) directly leads to the occurrence of another event (the effect).

Behaviour

The actions or reactions of an organism, often in response to its environment.

Behaviourism

A psychological approach that emphasizes the study of observable behavior and the role of environmental forces in shaping it, discounting mental states as primary causes of behavior.