A bond has a face value of $1,000, a coupon rate of 0 percent, yield to maturity of 9 percent, and 10 years to maturity. This bond's duration is

Name: A bond has a face value of $1,000, a coupon rate of 0 percent, yield to maturity of 9 percent, and 10 years to maturity. This bond's duration is
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Question

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Since the bond has a coupon rate of 0 percent, it is a zero-coupon bond. The duration of a zero-coupon bond is equal to its time to maturity, which in this case is 10 years.

A Bond Has a Face Value of $1,000, a Coupon