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: 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.
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Question

Quizplus · Accepted Answer

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

What Is the Duration of a 5-Year Par Value Zero