The duration of a zero-coupon bond:
A)is smaller than its maturity
B)exceeds its maturity
C)equals its maturity
D)depends on the size and timing of intervening cash flows between issue and maturity

Question

Quizplus · Accepted Answer

The duration of a zero-coupon bond equals its maturity. This is because there are no intervening cash flows between issue and maturity, so the duration is simply the time until maturity.

The Duration of a Zero-Coupon Bond