Identify the Bond That Has the Longest Duration (No Calculations

question 31

Multiple Choice

Identify the bond that has the longest duration (no calculations necessary) .

• A) 20-year maturity with an 8% coupon
• B) 20-year maturity with a 12% coupon
• C) 20-year maturity with a 0% coupon
• D) 10-year maturity with a 15% coupon
• E) 12-year maturity with a 12% coupon

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Definitions:

Lumbar Region

The lower part of the back comprised of five vertebral bones, L1-L5, which bear much of the body's weight and are the most common site of back pain.

Lordosis

A condition characterized by an excessive inward curvature of the spine, typically in the lower back.

Articular Facets

Smooth, flat areas on the ends of bones that form joints, allowing bones to glide over each other with minimal friction.

Transverse Processes

Projections from the side of a vertebra that serve as points of attachment for muscles and ligaments.