9-72 What is the duration of a 5-year par value zero coupon bond yielding 10 percent annually?
A)0.50 years.
B)2.00 years.
C)4.40 years.
D)5.00 years.
E)4.05 years.

Name: 9-72 What is the duration of a 5-year par value zero coupon bond yielding 10 percent annually? A)0.50 years. B)2.00 years. C)4.40 years. D)5.00 years. E)4.05 years.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

The duration of a zero-coupon bond is equal to its maturity, which is 5 years in this case.

9-72 What Is the Duration of a 5-Year Par Value