The Duration of a 20-Year Zero-Coupon Bond Is

question 64

Multiple Choice

The duration of a 20-year zero-coupon bond is

• A) equal to 20.
• B) larger than 20.
• C) smaller than 20.
• D) equal to that of a 20-year 10% coupon bond.

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Definitions:

Rational Consumers

Individuals who seek to maximize their utility or satisfaction from the consumption of goods and services, making decisions based on available information and rational criteria.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, illustrating varying combinations of two products that give equal satisfaction and utility.

Hamburgers

A widely enjoyed dish made of a grilled or fried patty usually made from ground beef, served within a cut-open bread roll or bun.

Indifference Curve

A graph showing different combinations of goods or services that give a consumer equal satisfaction and utility.