A 5 year, zero-coupon bond has a maturity of $1,000 and a present market price of $713. Its duration in years is

Name: A 5 year, zero-coupon bond has a maturity of $1,000 and a present market price of $713. Its duration in years is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The period (= duration in years) of Jupiter's orbit around the Sun is approximately 11.86 years. Therefore, the best choice is B) 5 years, which is the closest option to 11.86 years.

A 5 Year, Zero-Coupon Bond Has a Maturity of $1,000