Given its time to maturity, the duration of a zero-coupon bond is ________.
A) higher when the discount rate is higher
B) higher when the discount rate is lower
C) lowest when the discount rate is equal to the risk-free rate
D) the same regardless of the discount rate

Question

Quizplus · Accepted Answer

The duration of a zero-coupon bond is equal to its time to maturity, regardless of the discount rate, because it makes only one payment at maturity.

Given Its Time to Maturity, the Duration of a Zero-Coupon