Duration of a coupon paying bond with same maturity is:
A) equal to its number of payments.
B) less than a zero coupon bond.
C) equal to the zero coupon bond.
D) equal to its maturity.

Question

Quizplus · Accepted Answer

Duration of a coupon-paying bond is always less than its maturity because the investor receives some payments before the bond's maturity, which reduces the bond's duration compared to a zero-coupon bond that pays all at maturity.

Duration of a Coupon Paying Bond with Same Maturity Is