What Is the Duration of a Five-Year Zero-Coupon Bond

question 4

Multiple Choice

What is the duration of a five-year zero-coupon bond?

• A)2.5 Years
• B)1 Year
• C)5 Years
• D)0 Years

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Definitions:

SJSU Freshmen

A specific group of first-year students at San Jose State University.

Average College Freshman

A hypothetical or statistical representation of an incoming college student based on average attributes or characteristics.

Z-test

A Z-test is a statistical test used to determine whether two population means are different when the variances are known and the sample size is large.