A bond with a face value of $1,000, coupon rate of 0%, yield to maturity of 9%, and ten years to maturity. This bond's duration is:
A) 6.7 years
B) 7.5 years
C) 9.6 years
D) 10.0 years

Name: A bond with a face value of $1,000, coupon rate of 0%, yield to maturity of 9%, and ten years to maturity. This bond's duration is: A) 6.7 years B) 7.5 years C) 9.6 years D) 10.0 years
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The duration of a zero-coupon bond is equal to its time to maturity, which is 10 years in this case.

A Bond with a Face Value of $1,000, Coupon Rate