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:

Growth Targets

Specific objectives set by a business or organization aiming for a certain level of expansion or development within a given timeframe.

Incentive Pay

Financial reward given to employees beyond their regular salary, often based on performance criteria, to motivate and encourage higher productivity.

Downside Risk

The potential for loss or negative outcome in an investment or business situation.

Upside Potential

The potential for an investment, company, or project to increase in value or profitability.