Which One of These Bonds Has the Highest Duration

question 6

Multiple Choice

Which one of these bonds has the highest duration?

• A)15-year high coupon
• B)15-year zero coupon
• C)10-year zero coupon
• D)10-year high coupon
• E)15-year low coupon

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Definitions:

Income Distribution

Refers to how a country’s total GDP is spread amongst its population, affecting economic equality and citizens' standard of living.

Last Three Decades

Refers to the most recent thirty-year period. Depending on context, this can relate to economic trends, technological advancements, or societal changes that have occurred within that timeframe.

Median Income

The income amount that divides a population into two equal groups, half having an income above that amount and half below, serving as a measure of central tendency.

Hispanic

Relating to, characteristic of, or derived from Spain or Spanish-speaking countries, especially those in Latin America.