Duration of a Pure Discount Bond

question 23

Multiple Choice

Duration of a pure discount bond:

• A)is equal to its half-life.
• B)is less than a zero coupon bond.
• C)is equal to the liabilities hedged.
• D)is equal to its maturity.
• E)None of the above.

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Definitions:

OASDI

An acronym for Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program in the United States that provides retirement, disability, and survivors benefits.

Hospital Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured in a hospital setting, often part of broader health insurance plans.

OASDI

The Old-Age, Survivors, and Disability Insurance program, which is the official name for Social Security in the United States, providing benefits for eligible retirees, disabled individuals, and their families.

Hospital Insurance

Coverage that pays for hospitalization expenses either partially or in full, typically part of health insurance.