Which of the following bonds has the longest duration?
A)five-year coupon bond
B)five-year,zero-coupon bond
C)ten-year coupon bond
D)ten-year,zero-coupon bond

Name: Which of the following bonds has the longest duration? A)five-year coupon bond B)five-year,zero-coupon bond C)ten-year coupon bond D)ten-year,zero-coupon bond
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Question

Quizplus · Accepted Answer

The longer the maturity or time to maturity, the longer the duration of the bond. Therefore, the ten-year, zero-coupon bond has the longest duration among the given options.

Which of the Following Bonds Has the Longest Duration