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A Zero Coupon Bond Has a Duration Equal to Its

question 25

True/False

A zero coupon bond has a duration equal to its maturity and a convexity equal to zero.


Definitions:

Auditory Tubes

Also known as Eustachian tubes, these are canals that connect the middle ear with the nasopharynx and help equalize pressure between the ear and the throat.

Tympanic Membranes

The tympanic membranes, or eardrums, are thin tissues that separate the outer ear from the middle ear, vibrating in response to sound waves.

Lacrimal Canaliculi

Small channels located in each eyelid that drain tears from the eye's surface into the lacrimal sac as part of the tear drainage system.

Homozygous Recessive

A genetic condition where an individual inherits two identical recessive alleles for a specific trait.

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