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

question 14

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:

Raw Materials Inventory

Refers to the total cost of all the materials that are currently in stock and have not yet been used in the production process.

Factory Labor

Work performed by employees in a manufacturing setting, directly involved in producing goods.

Control Account

A summary account in the general ledger that aggregates the details held in a subsidiary ledger for easier oversight and reconciliation.

Factory Labor

The workforce involved in the production process within a manufacturing facility, including direct and indirect labor.